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How to get a mortgage when the appraisal says too much value is in the land?

Asked by evander (465points) January 26th, 2010

We are trying to buy a house that has 11 acres of land, which we hope to do some farming on. We do not have much cash to put down, and the underwriters denied our mortgage because according to their standards, too much value is in the land. The appraisal came in at $210,000, but it put the value of the home at around $105,000 and the value of the land at $105,000. Apparently an acceptable home to land ration is 75/25 on a conventional loan. We have the house under contract at the price of $179,000, so we think we are getting a great deal but we can’t get the money. Creative ideas? No, we have no rich relatives.

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