Profile picture for user2790167

I'm having a problem with mortgage approval with 65% LTV and excellent credit

I am applying with Bank of America for a refinance. I am taking money out of the mortgage for home improvements. I decided on BofA as I am an existig banking customer of thiers and have always had a good relationship with folks at my local branch. I will be modernizing and renovating the kitchen and upstairs bathroom and painting several rooms. The bathroom and kitchen both have peeling paint on the ceiings which will be taken care of during the renovation and the other rooms will be painted. I am now being told by the Bank of America that I need to do all of the painting in advance in order to qualify for the loan. I had an appraisal done four months ago and it came in at $500,000 as is. The bank appraisal was for $552,000 contingent on painting being done. I am applying for a $335,000 mortgage and I have an excellent credit score. I'm having trouble understanding this whole situation and it all seems quite absurd. I'd appreciate any comments and suggestions.
Thanks
  • September 09 2013 - Newton
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Answers (8)

Go with a portfolio lender that has "common sense underwriting" .... BTW BofA laid off thousands of people today in the mortgage department.
  • September 10 2013
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Profile picture for iupswack
Listen to the 5 answers below from the mortgage individuals in the mortgage form, not the 1 REA answer. going up the chain is not going to do anything if the appraiser marked it "subject to completion". This would mean that his value is subject to the painting being completed.
  • September 10 2013
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Profile picture for dorothywebner
It is great idea to just get the painting done, both for your safety and others With the rates on the rise, you may want to do it sooner than later.
  • September 10 2013
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BofA does not appear to be lending its money too easily these days..I myself and others I know, have had issues recently. Even with great credit and income, it just doesn't seem to be happening. I don't believe it has anything to do with your local employees either. 

I'll I can say is for you to persist, write letters to everyone up the chain, and PERSIST...... the squeaky wheel gets the grease... good luck.
  • September 10 2013
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Profile picture for shapiroamg

Scraping and putting a coat of paint or better, primer would probably suffice. If you have locked and want to protect your rate, I would suggest doing this asap.  As others have said this will be the case with anyone else. It needs to be fixed

  • September 10 2013
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BOA is obligated to minimize its exposure when underwriting their loans. I understand that it may be a pain, but most companies will require this repair be done before moving forward with the closing on this file, if the appraiser have listed it on the report.
  • September 09 2013
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I can see it both ways.  As mentioned below, it can be a safety concern but at that LTV and I am guessing the cost to cure being so low it would not be a problem.  If you would like to discuss further, please contact me through my profile and in the meantime I will see if I can get some clarification from someone.
  • September 09 2013
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It sounds like the market value of your house is $552,000. The appraiser noticed the peeling paint on the ceiling (which is a safety & health hazard.) Before the appraiser will sign off on the appraisal, he is requiring that the ceilings be repainted to address the peeling paint issue.
  If this is the case, this is not unusual as the bank will not lend the money if there are unaddressed safety concerns with the home.
  • September 09 2013
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