We are selling a house and are under contract.  The selling price of the home is $156,500.  They buyer is getting a VA loan.



The buyer's lender/broker is getting the appraisal done today.  



My question centers around - what happens if the appraisal is less than the sales price of the home?



Let's say the appraisal comes in at $153,000.  What happens?



Will the lender approve the loan for $156,500 and stretch this as the appraisal is "close enough" within margin of error?  Or will the VA refuse to stretch any at all and will ONLY write the loan for exactly the amount of the appraisal?



What will our options be?  Will we be forced to sell the house at exactly the appraisal price and no more... or is there any wiggle room here?  Or if the buyer wants the home - will they be forced to come up with $3500 cash at closing to cover the difference?



My realtor is telling me as long as the appraisal is within a few thousand - they will generally go ahead and stretch and approve the loan.  I just want to see what say the arfcom loan experts?

It's going to depend on the lender, the market and state laws.  They might stretch it if it's that close, but after the recent mortgage clusterfuck, it might come down to either you lowering your price or the buyer coughing up cash.  Rarely is it that close though.  If your Realtor did their job it shoulde be priced properly.

Bump - anyone else?