I have gone through a few VA and FHA loans and the appraisals have been no big deal. FHA appraisals lately have become quite the challenge. I know my market inside out, know the boundaries where prices are affected and have a good sense of what is over-priced and under-priced. I recently received a contract that was 100% FHA. I know the buyers and they are solid as a rock. High net worth, solid employment, fantastic credit scores. I know the home and what the value is. Even beyond that, there were multiple offers for full price within a very short time. That is a good indicator that the home was priced right (maybe even too low).
The problem is I got word that the home did not appraise. I was shocked to say the least. I did my research and can easily justify the value of the home. I still have not seen the appraisal yet but should get it on Monday. I have heard from a few title companies that FHA loans are failing because of appraisals. They mention that it is becoming very common, much more than ever before.
Has anyone else noticed a change in FHA loans and the appraisal problem or am I just caught up in something very local?
Comments and any info is greatly appreciated...