Need advice on Low Lot appraised value for construction to perm loan

There is nothing you can do change the appraised value of the lot. Paying the difference of the sales price and appraised value of the lot will not change the fact that the appraisal is at $48,000. One option to look at if you want to pay the difference is to lower the price of the home by that same amount in order to maintain the total combined price. Please contact me if you would like further explanation. ThanksHome 1st LendingMark Asaad407-221-9531

Close the lot at $70,000, even if you need to bring in $30,000 at closing. Have builder credit you on the construction portion $30,000, as a prepaid allowance. Similar to Asaad, but may be easier for the closing agent.

This is a rather complicated answer to a complicated question and requires more information. First, I will assume the $319,000 does not include the lot. So the value needed with the house and the lot is $319,000 + 70,000 = $389,000. I also assume that you are buying the lot and house from the builder. So it appears you have a value $327,000 and that means you are short $62,000 in overall value. You can dispute the value of the appraisal with the lender but you will need to do your homework before do that. If the builder has sold lots in the past in the $70,000 range he should be able to provide you with recent comparable sales of those properties. If you know of any Realtors in the area that can find you comparable sales of properties (house and lot) similar in size and price ($389,000) that the appraiser did not use, you can provide them to the lender for consideration of increase of value or a new appraisal by a different appraiser. Not all appraisers are created equal. Its a process and will take some time so don't expect to close anytime real soon. As lenders we are now restricted in our contact with appraisers for fear we may unduly influence the value just to make the deal work. Thats why you or someone else must support any increase in value with supporting evidence that the appraiser may have missed or chose not to use. We have the Dodd / Frank Act to thank for that.

Unfortunately neither you nor your builder can change the fact that recent sold comparable lots are in the high $40K's.. but too much info is missing to properly advise you... Did you already own the lot prior to construction? If so, what did you pay for it?? If the lot and home are all inclusive and your sale price was set at $319K, then regardless of what the lot value is, your down payment will be 20% of $319K. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com