[kmeade]

We have a customer buying property that was purchased 143 days ago. The seller purchase a lot with a foundation for $15,000 now they are selling the lot with the house complete for $89,900. This loan is to purchase a house that is already constructed but it is less than 180 days since the seller purchased the lot and they are selling it for more than 20% than they paid (because they built a house). This is a higher priced loan. Would we need the 2nd appraisal?

[rcooper]

Unfortunately there isn’t an exception for this type of transaction, so you would need the second appraisal unless one of the exemptions in 1026.35(c)(2) or (c)(4)(vii) apply.

[kmeade]

What if the property is located in a rural county? 1026.35(c)(4)(vii)(H)

[rcooper]

Under this exemption, if the property is located in an area that meets definition of rural then the second appraisal would not be required.

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