Will Lender lend more than appraisal in SC?

[Cong Zhao]

Hello BP!

I have a flip in Spartanburg SC, the house just hit market. The best offer so far is a SC State Housing loan, FHA has some regulations to the house, but I'm not sure about this state housing. Thank you if you could help me out!

1. Does state housing require 3 month seasoning? It’s only been 2 months since I bought the house.

2. The offer is 125k, if appraisal come back at 118k, will lender do the agreed percentage on 125k? Or they will lend the percentage on 118k? If it’s the latter, I think the buyer can’t afford the extra 7k cash at closing to make it 125k.

I bought houses in Charlotte NC with conventional loan. And it happened that appraisal was a few thousand short of contract price, but my lender would match up with contract price. I don't know whether it will work in SC, or if it will work on state housing or FHA.

Thanks again guys!

[Chris Mason]

999 times out of 1000, someone using down payment assistance can't afford to pay a dime over the appraised value.