Home value and refi question

[brokeNconfused]

Hope someone can help me out there. I have a home i own 195k on. before i purchased it 2 years ago my county asser valued my land with home at 138k. Wwhen i purchased it was appraised at 205k ( that was high end with low at 195k) now this year my county assesed it again and valued it at 205k.

Question one. does a lender appraisal usually go higher than a county assesed value?

#2. What % does FHA lend at? 80 or 90%?

#3. the 31% mortgage to income? is this meaing if the payment is higer than 31% of my income or we wont qualify if my payment is higher than 31% over my income?

I have been told to add 20% to the county assesed value, but seems to give me a huge amount of equity if that is the case. Keeping my fingers crossed as i plan to attempt a Re-Fi in a few years..

any help would be great.

[StartingOver08]

Property value for selling and tax assessed value are really two differnt things. In order to determine market value for a refinance you look at the most recent sales in your neighborhood that have closed within the last 60 to 90 days. The properties have to be similar to yours. If you are looking to refinace, you can not predict what the value will be in a year. You can estimate based on the current trend, but really market value changes based on demand and the economy and naturally, location.

[brokeNconfused]

so is there a rule of thumb to "guesstimate" using the assessed value? It would be at least that amount right?

[Flamingo]

A call to your County's Assessment Division can quickly answer your question. County assessments are usually way lower than the actual value; some counties (such as ours) have not raised their rates in many years and are afraid to do so in this economy especially during an election year. I know they are dying to raise ours again - it has been quite a while.

If you are attempting to refi in a few years and not now, rates and rules after this melt down will more than likely change and it would be difficult to make any determination as to requirements now that would be in place in two years. FHA information is easily searchable on the net as to requirements - when we refinanced in 2006, their requirements were to have at least 20% equity in the house. Also PMI is collected in a lump sum at settlement (with a BK on your record) and is also paid for the first five years of the mortgage in your mortgage payment. It cannot be removed unless you refinance again. I foresee much stricter lending criteria in the years to come for anyone with bad credit or BK on their records due to just what occurred in the mortgage market.

[StartingOver08]

The tax assessed value has nothing to do with the actual market value if you were to sell a property. As an example, I am in S. Fl. when the market was riding high it was not unusual for the tax assessed value to be in the neighborhood of 70% of the actual sales price. Unless the property was homesteaded - then the tax assessed value was much lower because we have a cap on raising the assessed value on homestead properties.

Now, however, we have sales all the time where the actual sales price is 20%to 40% BELOW the tax assessed value.

You can not use a rule of thumb for value. You must use sold and closed comps within 90 days. The properties must be similar to your home in size, age, condition and location. Otherwise the numbers don't mean anything.

One important thing to remember - the tax assessed value is a STATED VALUE by the county tax assessors office. Their budget is determined by the income generated by taxes (in some fashion). It is mainly a matter of POLICY to set the values to generate the most amount of $$$ through property taxation. It literally pays for the tax assessor to value your property high.

[BK2008]

I appealed my 2008 tax bill. It was 'appraised' at 20K more than the homes were selling for! I got comps from my RE agent, and submitted those to the appraisal district, and got it rolled back.

The saving to me for the year came to $300.00

And if I should be so lucky to save my house, or ever buy another one again, I will routinely appeal the values, because they are usually based on what the county 'wishes' it was. Reality usually doesn't quite match.

You need to get an accurate appraisal (if you can afford it, hire your own), so you know how much you can re-fi on.
The purchase appraisal I got (thru the lender) was fake. That's part of the problem now with foreclosures, everything was based on the 'high prices', and now you can barely give 'em away.

[StartingOver08]

You got it BK2008! The county makes it paperwork intensive to discourage residents from challenging the tax valuation. The property tax values increased a whole lot faster than they are coming down!

[BK2008]

You got it BK2008! The county makes it paperwork intensive to discourage residents from challenging the tax valuation. The property tax values increased a whole lot faster than they are coming down!

I'm willing to spend the time and paperwork to do it.
I didn't even go in person...long lines...

I did it by certified mail, RRR.

[BK2008]

[
Question one. does a lender appraisal usually go higher than a county assesed value?
It tends to be higher, but 20%, especially in this market, I doubt it. Lenders have clamped down on free-wheeling appraisals. They should be using recent sales and the cost per sq ft for like-houses in your neighborhood.

#2. What % does FHA lend at? 80 or 90%? There is a limit to the $$ they will loan, depending on your state. Minimum 3% down payment required, and you will need mortgage insurance.

#3. the 31% mortgage to income? is this meaing if the payment is higer than 31% of my income or we wont qualify if my payment is higher than 31% over my income? Debt to Income ratio: Your payment (PITI) cannot exceed a 29% maximum ratio. IE, if your payment is $1000, your gross income is $3500, your payment represents 29% of your income.


This might help:http://www.fhaloan.com/lending_limits.cfm
Gives you a general overview of the program.