FHA still requiring 2 appraisals?

[Mike V.]

So I get a call from my agent on Monday and he mentions that FHA is requiring a second appraisal on a house that I rehabbed over the winter and am supposed to close on this coming Monday. I thought the removal of the 90 seasoning was going to stop this but apparantly not. I am way over 90 days ~130 days. Bank thought it had to do with the sale price being more than 4x what I paid for it. Is anyone else still experiencing this? Fortunately, both appaisals came in above sale price but just another thing to worry about.

[J Scott]

This decision is completely up to the underwriter, and can work both ways. While it hasn't happened on my deals, I've had other investors tell me they've sold FHA in under 60 days with just ONE appraisal.

Some underwriters will be comfortable doing things like this, and others will want extra documentation on deals they perceive as "risky." Just the nature of the business, and there is no reason to argue or fight the underwriter (you won't win).

I've had an underwriter ask for 3 appraisals in the past...it ultimately made him comfortable approving the deal, and we went to closing. Just part of the "game" these days...

In the future, find a lender/underwriter who is comfortable with the types of transactions you do and makes things easy, and then stick with that lender/underwriter for all your future deals.