What does it mean when an appraiser calls Tidewater?
The Tidewater Initiative (or Tidewater for short) is used when the appraised value of a home falls below its contract purchase price worked out by the buyer and seller. If they appraise the home at a value that’s too low for the seller, the deal might fall through, and the veteran buyer would be left out of luck.
What does the term Tidewater mean?
(Entry 1 of 2) 1 : water overflowing land at flood tide also : water affected by the ebb and flow of the tide. 2 : low-lying coastal land.
What is a tidewater request?
Tidewater Initiative Borrowers can try to combat a low valuation before it’s even official. Before finalizing the appraisal report, VA appraisers can notify the lender that it looks like the home’s value will come in below the purchase price. This is known as invoking the “Tidewater Initiative,” or Tidewater for short.
Do VA appraisals usually come in low?
Appraisal Results Sometimes the VA appraisal is lower than the asking price, and sometimes it is higher. The VA loan guaranty amount is based on whichever dollar amount is lower.
Can a veteran pay more than appraised value?
A VA loan can’t be issued for more than the appraisal value, so a low appraisal can send buyers scrambling. Ask the seller to lower the sales price to equal the appraisal value. This is the most common solution to an increasingly common problem, especially in the current housing market.
What will fail a VA inspection?
During the inspection, they’ll check for any wear and tear or issues that could cause the system to fail shortly after the sale goes through. If they determine that the system isn’t able to heat the house to at least 50 degrees Fahrenheit during the winter without issue, the house will fail the inspection.
What does Tidewater look like?
Tidewater region is generally flat and low flooded river plains composed of tidal marsh and large expanses of swamp. In Maryland the Tidewater area is the flooded river areas below the Fall Line. The Hampton Roads area of Virginia is considered to be a Tidewater region.
What is Tidewater in history?
TIDEWATER is a term commonly used to designate that portion of the Atlantic coastal plain lying east of the points in rivers reached by oceanic tides. This region, the first to be occupied by settlers from the Old World, slowly became an area of comparative wealth.
Can a VA buyer pay over appraised value?
What happens if home appraisal is lower than sale price?
What happens if the appraisal is lower than the purchase price? If the appraisal comes in lower than the purchase price, your lender will likely decrease the amount you can borrow. So you’ll either have to pay more out of pocket or get the seller to lower their asking price.
Why do Realtors hate VA loans?
Many sellers – and their real estate agents – don’t like VA loans because they believe these mortgages make it harder to close or more expensive for the seller. Are less likely to close than other types of mortgages. Take ages to reach closing. Have appraisers who are slow and routinely undervalue homes.
What will not pass a VA appraisal?
Insufficient Heating Homes that do not have adequate heating systems will never pass the VA appraisal. For this reason, homes that employ the use of a wood stove as the main heat source must have a secondary heating system that can maintain a minimum temperature of 50 degrees in plumbing areas of the home.
What is a tidewater appraisal?
The Tidewater process is an extra step that sometimes occurs with VA home appraisals. It is used in cases where the property appraises below the contract purchase price. Tidewater gives the VA-approved appraiser a way to request additional information that might support the sale price.
What is a tidewater notification?
Tidewater, is the VA code word for giving the lender, the one that is working with the buyer that is purchasing a property using a VA loan, notice of having two days to run comps and get them to the VA appraiser for their review.
What is a VA Tidewater?
Tidewater, Virginia. The Tidewater region is the easternmost (dark green) region. Tidewater is a region of low-lying plains of southeast Virginia and northeastern North Carolina, part of the Atlantic coastal plain in the United States of America.