Loan Criteria

What is the name of your state? NY I understand that most lenders are generally looking for at least 20% down now on residential properties. I’m considering offering on a home that appraises for $280,000, but it has some structural and septic issues that amount to about $15,000. I think they will take appraisal, and I have the 20% of this, but my question is does the bank normally reduce their base line by the amount of any structural repairs? In this case they might only lend me 20% of $265,000, in which case I have to come up with the extra 15k. Maybe I should ask, do lenders simply require that appraiser include inspection information on the appraisal?

[HomeGuru]

Originally Posted by co-executor

What is the name of your state? NY I understand that most lenders are generally looking for at least 20% down now on residential properties. I’m considering offering on a home that appraises for $280,000, but it has some structural and septic issues that amount to about $15,000. I think they will take appraisal, and I have the 20% of this, but my question is does the bank normally reduce their base line by the amount of any structural repairs? In this case they might only lend me 20% of $265,000, in which case I have to come up with the extra 15k. Maybe I should ask, do lenders simply require that appraiser include inspection information on the appraisal?

**A: some lenders do and some do not. You can bet though that the lender would be concerned over those types of problems.