Adjusted As-Is Value (Applicable to 203(K) Only)

Adjusted As-Is Value (Applicable to 203(K) Only)

For purchase transactions, the Adjusted As-Is Value refers to the lesser of: • the purchase price less any inducements to purchase; or • the As-Is Property Value. For Refinance transactions, the Mortgagee must obtain an as-is appraisal to determine the Adjusted As-Is Value when the existing debt on the Property plus the cost of repairs exceeds the After Improved Value, or the Property was acquired within 12 months of the case number assignment date. For Properties acquired greater than or equal to 12 months prior to the case number assignment date: • When an appraisal is obtained, the Adjusted As-Is Value is the As-Is Property Value. • When the existing debt on the Property plus the cost of repairs does not exceed the after-improved value, the Mortgagee has the option of using the existing debt plus fees associated with the new Mortgage or obtaining an as-is appraisal to determine the Adjusted As-Is Value. For Properties acquired within 12 months of the case number assignment date, an as-is appraisal must be obtained. The Adjusted As-Is Value is the As-Is Property Value. For Properties acquired by the Borrower within 12 months of the case number assignment date by inheritance or through a Gift from a Family Member, the Mortgagee may utilize the calculation of Adjusted As-Is Value for Properties acquired greater than or equal to 12 months prior to the case number assignment date.