Loan denied due to property being too large
I got approval for an FHA loan with property value at $2.3M. The loan was for $650k and the property is 32 acres. On final clearing the loan was denied since the property is too large for both an FHA and conventional loan. What are my options? by rogerspl133 from Stockton, Kansas. Mar 8th 2022
John Burke (jburke)
#27 ranked lender in Texas - 321 contributions
What state and county is the home in? My guess is the land to building value was way off. Here's what I mean. Typically, the total "value" of the land cannot exceed 30-35% of the total value. Here's what it would look like in this scenario. $2,300,000 X 35% = $805,000. That is the total "value" of the land which puts the "value" of the home at $1,495,000. | John Burke | Senior Mortgage Banker | Lending in ALL 50 states |Stride Bank | jburke@stridebank.com | (877)228-9069 | NMLS# 787231 |
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