Appraisal gap in San Diego
Quick answer: When the appraisal comes in under the contract price, the gap equals contract price minus appraised value. The loan follows appraised value times LTV rules, not the wish list. Options are bring cash, renegotiate, or walk if the contingency still allows it. No invented rates on this page.
Competitive San Diego offers can clear list. Appraisals do not always follow. The lender cares what the house supports, not what two buyers bid each other into. That mismatch is the appraisal gap.
The only formula on this page
Gap = contract price − appraised value.
Math example, not a quote: contract $1,050,000, appraisal $1,000,000, gap $50,000. Your numbers will be different. We do not invent them here.
Loan amount follows value, not hope
The loan is sized on the lower of contract price or appraised value, then the LTV rules for that program. If you planned 10% down on the contract price and the appraisal drops, either the loan shrinks or your cash goes up. Jumbo versus conforming still tracks loan amount against the 2026 San Diego County 1-unit high-cost conforming line of $1,104,000. See loan limits and loan amount vs list price.
Three paths when the number comes in low
- Bring cash. Cover the gap so the seller still gets the contract price and the loan stays inside LTV. That cash sits on top of your planned down payment and closing costs.
- Renegotiate. Ask the seller to cut price, split the gap, or add credits. Credits help cash to close. They do not raise the appraised value.
- Walk, if you still can. An appraisal contingency that is still open can let you cancel. Waived contingencies change that. Read the contract dates before you assume an exit.
FHA and VA are not the same file
Conventional investors use LTV on the appraised value. FHA and VA have their own appraisal and value rules, including how a low value gets handled on the purchase. If 3.5% down is the path, see FHA loan San Diego. If entitlement is the path, see VA loan San Diego. We map the program on the file, not with a rate on this page.
Size the loan before you write. Start at get pre-approved San Diego. Company NMLS 2394495. Amir Nurani NMLS 197458. San Diego County and Riverside County. Call (619) 366-9494.
Frequently asked questions
Gap equals contract price minus appraised value. If the contract is $1,050,000 and the appraisal is $1,000,000, the gap is $50,000. That is arithmetic, not a quote.
Loan amount follows the lower of contract price or appraised value, then LTV rules for the program. Wishful list price does not size the loan. See loan amount vs list price.
Bring cash to cover the gap, renegotiate price or credits with the seller, or walk if your appraisal contingency still allows it. Timing and contract language matter.
Writing above list in San Diego?
We size loan amount and cash for a gap before you write. No invented rate on this page.
Get Pre-Approved(619) 366-9494 · Amir Nurani · NMLS #197458
Left Coast Leaders, Inc. · NMLS #2394495 · DRE #02191517 · Equal Housing Lender · San Diego County and Riverside County · San Diego, CA