Can a USDA appraisal be used to close a conventional loan?
The lender is not sure if the property will qualify for a conventional loan. The underwriter is saying it will depend on what the appraisal says it may need to be a USDA loan the problem is if the property qualifies for conventional loan the USDA appraisal may not be eligible to be used for a conventional loan. by vnavarro597 from , California. May 13th 2014
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
A USDA loan is underwritten as a conventional loan product and the appraisal should conform, generically, to the requirements of a conventional loan. However, there is more data in the USDA appraisal than in a standard appraisal, so it is likely your investor/lender may require the appraiser to amend the appraisal to remove the USDA components. If your underwriter is saying a USDA appraisal is not acceptable for a conventional loan, then that is your answer, for that lender. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com ~ 888-889-9950
Hans Bruhner (hans@asktheloanman.com)
#206 ranked lender in California - 18 contributions
It should be able to be converted at a cost as long as you are staying with the same lender. Appraisals generally can't be transferred from one lender to another. We do it all the time when we keep the loan in house.
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
There are additional requirements on the appraisal for a USDA loan that is not on a conventional loan appraisal. But, switching between loan programs happens all the time, and all the lender needs to do is contact the appraiser to get the additional USDA information added to the appraisal. For USDA loans in MN, WI, or SD, visit www.MortgagesUnlimited.biz/usda
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