Investor · Lodi, NJ · Member since 2013 · 487 posts · 179 votes
Hey BP Community.
I have a property currently under contract with 10 day inspection period. We are using an FHA 203K loan. Does anyone know if the ARV appraisal results are usually available within the inspection period?
My concern is that the ARV appraisal comes in lower than expected AFTER the inspection period and we don't have an out close at that point. The property isn't worth the investment without the rehab loan.
The appraisal results due date depends on when you give the lender permission to order the appraisal, and the appraisal timelines, appraisal backlog, and appraisal turn times.
Could you get the appraisal results back to you within 10 days ..... Yes, but it depends on when the appraisal is ordered.
Does your purchase contract have a separate contingency for appraisal, outside of the inspection period?
I ask that because in Arizona, the appraisal contingency and the inspection contingency are separate items on the standard template purchase contract, meaning that the appraisal is not required to be completed during the inspection period.
Review your purchase contract and also check with your REALTOR for more information.
Another thing regarding appraisals and the 203k is that you cannot get the appraisal ordered/completed until after you have the 203k Consultant's Report and the Certified 203k Contractor's proposal, which are used to determine the ARV.
Both of these usually take longer than 10 days.
Hopefully you wrote in your purchase contract the HUD required verbiage, which is "Contract contingent upon loan approval and buyer’s acceptance of additional required improvements as determined by HUD or the Lender or the buyer."