Thread: Mortgage Co. Requiring 2 appraisals,says its new federal law?

Originally Posted by deedee0

Hello readers, I am in the process of buying a home. My mortage is considering rental income on a condo I currently own to qualify me for the mortgage. The mortgage company is charging me 2 appraisal fees. One for the new property and another one to have my condo appraised? They indicated its a new federal law that requires any rental properties to be appraised.
My realtor did not know about this "new law". I'm wondering if it is federal law or is it just the mortgage company wanting to get the property appraised, in which case I don't know if I should be paying for it?
Thank you for sharing your knowledge on this subject.
(I am in NJ)

i am not sure if i am right but you have a condo and you want to rent that and buy a new house right?

if so, maybe the bank wants to appraise your condo to see if you have 30 or more equity. THe appraisal for the new property is a must. I could be wrong here. But that is my guess. sorry i am not a realtor lol

Hi, yes you are correct. I own a condo & I am renting it because I am buying a house.

I know I have to pay for the new property appraisal, I just didn't know I had to also pay for my current property to be appraised too.

Either way, whether it's a national law or if it's the policy of your mortgage company, you'll end up having to do the 2nd appraisal any ways.

Unless you find another mortgage company that doesn't have this in their policies. However, there's no reason to assume the mortgage dealer is lying to you about the law.

Yes if money from the rental is required to purchase the new home then another appraisal would have to be done and you would have to pay for it. I don't think it's a new law, this has always been the case in Arizona anyway.

Sad to say but you really need to undergo with the 2 appraisal fees,
well this is the policy of the mortgage company wherein you had applied
if you want you can go back to where you had started and find another
company but this time you must be aware of all their policies

It's a good topic that deedee raised. I didn't know the rules either. But it seems that property should have appraisal for everytime it's renewed/ reuse otherway.