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HELP! New FHA appraisal 1 week prior to closing on new build - what to do if it comes in low?

My husband and I have built a new home with a reputable builder in our area.  Our first lender was unreliable, at best, and we had to change to a new lender.  We had an FHA appraisal through the first lender which was transferred to our new lender, and we built our home to stay within that appraisal amount and specs.
Flash forward:  One week before closing, and we learn our FHA case # expired.  Whose fault is moot.  We have to go through ANOTHER appraisal.  What recourse do we have if this comes in lower than our original appraisal amount?  We really have NO additional funds to make up a difference if it falls short...
  • November 30 2011 - Mason
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Answers (2)

Profile picture for Gettysgirl
The first appraisal was in April of this year.  We've just heard some serious horror stories in our area of people getting a low ($20K +) appraisal, then getting a second that was even lower.  Needless to say, we are a bit worried.

The appraisal did come in last night, but had typographical errors.  Underwriting (?) sent it back for correction and expect it today.  We have our fingers crossed, obviously.  

Thanks for the reassurance, Mark.  :)
  • November 30 2011
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You have not recourse, based on my experience. If the values for the area have remainded constant or have been increasing, you should not have an issue. If not, you will be required to bring the difference to closing.

How long has it been since the first appraisal was completed?
  • November 30 2011
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