the “bermed” home falls into the category of unique property, like a log home. These are always hard through out the loan process. Even if the appraiser gave you the value you expected, the underwriter may still reject it. Try to renegotiate the buy, most buy contracts are dependent on appraisal and financing.

Partial berms have benefits, but uncommon architecture, such as with poured concrete walls and partial berms, is harder to sell, making the loan riskier. You will have to accept that fact to know a lender’s reluctance to risk a foreclosure on it.

The rates are still low and with the bailout and reduced Federal rate, the credit market should loosen up and reduce interest rates.

You should try again with a slightly reduced offer ($175,000 would be reduced by 2.7%), consider adding more down payment if possible, and consider other loan sources.

The best loan for you would be a conventional loan (originated at a bank and not the government) if you can get the 5% ($9000 on a $180K house) or more down payment. Requirements like that quirky appraisal and the VA’s additional processing fees make those loans not worth it unless they are used to buy with a smaller than 5% down payment.

I don’t do VA but I do FHA appraisals. One thing you have to remember, the appraiser should have made the $3500 adjustment, because its not what you would buy or pay for, its what the typical buyer would do and most buyers would not want a bermed home. Just because you reckon its a fantastic home, does not make the appraiser uninformed and ignorant? Also if they are such a fantastic home then why aren’t there more of them, its not the appraisers fault that there were no comps. I reckon your problem is more with VA guidelines on what type of prop that will qualify

I don’t reckon that VA loans are always well clarified. The VA is picky about what it will and will not allow in a home it finances. Some sellers won’t even consider VA financing because they don’t want to be forced to make repairs or changes that VA loan approval would demand. You will face more restrictions with a VA loan than a conventional loan. It’s a consequence of using this program.

You have two options here: you can seek out a conventional loan and try to buy the house with that or you can look for a home that meets VA standards. If you’re unwilling to use anything but your VA loan, make sure your buyer’s agent is familiar with VA financing. They can help steer you towards homes that will work.

Place in new offer for $3,500 less. Just went through a VA loan and ours appraised lower than original offer, sellers came down now in home. In this market you have a excellent chance of them giving in for that small amount.

Congratulations! You are now the millionth person the VA has f*cked in the @ss.

CUTE…

Bermed houses are hard to sell therefore not excellent collateral for loans.

This site could help you in making a pretty excellent choice.http://www.mienterprize.com/?organicrhinofamily I am pleased to here that you are in to natural parenting.The world needs more like you!

WOW! That is an awesome thought. I reckon you would make a lot of money making a site like that. To get a site like that up and running and getting traffic to it will probably cost you about $1000 to start with then probably only like 20 or 30 bucks a month after that. So if you dont have $1000 then yes you can go to the bank and get a business loan. You should check out SBI, I reckon they are the perfect solution for you. You can check them out here:
http://buildit.sitesell.com/ebizupdates.html

Please contact me with any more questions, or if you need any help.