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Fha appraisal

Hello,

I have applied for a FHA loan, the property I applied for has a setup of a business and a house. The house is 3,300 sq ft and the business is an outbuilding with 1500 sq ft. The house has one adress, the outbuilding has a different number address under the same parcel. The house is zoned residential, the outbuilding has a special zoning as commercial but with limited use. The lot space for the house is bigger than the lot space for the outbuilding.

For what I understand FHA loans allows mixed used as long as 51% or more is residential plus other details. Well, the case is the property did good with FHA appraiser with the other details except for that 51% rule.

According to the lender company. The appraiser interpreted that the whole property is commercial even though zoning says contrary and there is a house. To get this interpretation he did not measure what is allowed to be used as commercial.

The bank turned down the offer because the appraiser did not measure correctly the use of either the residential or commercial. His interpretation was totally off the reality of the setup of the property. The bank wouldn't do a second appraisal.

I could be wrong, I am not an expert, but nowadays there is a higher number of appraisals being done therefore there are higher risks of committing honest mistakes.

What would you do in my case? Just get another lender? Or if the appraiser is wrong, what to do?

submitted by /u/Traditional_Nerve_76
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source https://www.reddit.com/r/RealEstate/comments/svheza/fha_appraisal/
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