What happens if the appraisal comes in lower than the sales price?
If this happens, there are a few things you can do. The VA will allow you to ask for what is called a reconsideration of value. With a reconsideration of value, you can request the value of the home be higher based on other comps not used in the appraisal. Another option is for you to possibly take a slightly higher rate on the loan and have your lender credit you back some money to offset the difference. If you cannot come up with the money to cover the difference yourself, the seller ultimately has to come down on the price to match the house’s appraised value. The VA Loan can only go up to the lower of the sales price and the appraised value.
