New home construction loan appraisal came low...

November 6, 2019

I just got the appraisal from the bank. Our building cost is $400,000 including site work and we purchased the lot for $32,000. The bank appraisal came back as $389,000 with the land price factored in. Bank provides 90% of the loan with a PMI during construction ($88/month). So, the bank will give only $348,000 and we have to come up with $48,000 as down.

We have reserved $65,000 for down. So, it's not difficult to meet the down requirements. The issue is, it's a good piece of property in a subdivision in that small town and our house is with many upgrades as tile and hardwood flooring, radiant heating, custom kitchen cabinets, wood siding, porch, deck, basement, attached garage, bonus room, etc. So, we were expecting a better appraisal. We haven't seen the appraisal document yet, and want to check whether they missed any key features.

Any thoughts?

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