Your Right to the Appraisal, and What Happens When a Jumbo Appraisal Comes in Low

If you're getting a first mortgage, your lender has to give you a free copy of every appraisal and written valuation, promptly once it's complete or three business days before closing, whichever comes first. If a jumbo appraisal comes in below the price, you can ask the lender for a reconsideration of value, and the gap between price and value becomes a negotiation, with your attorney reading what the contract allows.

I'm Dennis Mark Interdonato with The Dennis Mark Group at Keller Williams Realty Ocean Living. In Monmouth and Ocean County, a one-unit loan above $1,209,750 is a jumbo loan in 2026, and at that size a small percentage gap between price and appraisal is a lot of dollars. Here's what the federal rules say, and what I do about it from the seller's side.

When is a loan "jumbo" in Monmouth and Ocean County?

When it's bigger than the conforming loan limit. FHFA explains that Fannie Mae and Freddie Mac "are restricted by law to purchasing single-family mortgages with origination balances below a specific amount," the conforming loan limit, and "Loans above this amount are known as jumbo loans." For 2026, the one-unit limit is $1,209,750 in both Monmouth and Ocean County (FHFA). FHFA announced the 2026 figures in November 2025, so check its page for 2027's once they're out. More in what a jumbo loan is in Monmouth and Ocean County.

Do you have a right to see the appraisal?

Yes. Regulation B, the rule under the Equal Credit Opportunity Act, says a lender "shall provide an applicant a copy of all appraisals and other written valuations" developed for an application for credit secured by a first lien on a dwelling. The copy is due "promptly upon completion, or three business days prior to consummation," whichever is earlier (12 CFR 1002.14). A few details matter:

• You're told up front. The lender has to send a written notice of your right to the copy no later than the third business day after it receives your application.
• The copy is free. A lender can't charge you for providing it, though it may charge a reasonable fee for the appraisal itself.
• You can waive the timing and agree to get the copy at or before closing instead. That waiver has to be given at least three business days before closing, except for clerical changes. The copy is how you find a problem in time, so think before you sign one.

The CFPB's short version: "You have the right to receive a free copy of your home appraisal for a first-lien mortgage" (CFPB).

What happens when a jumbo appraisal comes in low?

Someone has to decide who covers the difference. On loans Fannie Mae buys, the property value used for a purchase loan's loan-to-value ratio is "the lower of the sales price or the current appraised value" (Fannie Mae Selling Guide B2-1.2-01). Fannie Mae can't buy a jumbo loan, so ask your jumbo lender how it figures value on a purchase.

If it works the same way, here's the math with round, hypothetical numbers. A $2,000,000 contract with 20% down means $400,000 in cash and a $1,600,000 loan. If the appraisal comes in at $1,900,000, keeping the loan at 80% of value means a $1,520,000 loan, and the buyer's cash goes to $480,000.

The CFPB is blunt about it: "It is very risky to purchase a home for more than the appraised value." Its next steps are to get a copy of the appraisal, ask the seller to reduce the price, because "The appraisal is strong evidence that the price was above the market value of the home," and if the seller won't, consider cancelling and talk to an attorney about the costs your contract might carry (CFPB).

For a seller, it comes down to three choices: lower the price, have the buyer cover the gap, or meet in between. Whether the buyer can walk away depends on the contract's mortgage or appraisal contingency, and reading it is your attorney's job.

How does a reconsideration of value work?

It's a request to have the appraisal looked at again. The CFPB put it this way in 2022: homebuyers "can ask for a lender to reconsider a home valuation the consumer believes to be inaccurate" (CFPB). In 2024, five federal agencies, including the CFPB, the Federal Reserve and the FDIC, issued guidance saying a consumer "may provide specific and verifiable information that may not have been available or considered," including comparable properties not previously identified and property details that were reported wrong or left out (interagency guidance, OCC Bulletin 2024-18).

For loans Fannie Mae buys, its Selling Guide spells out the borrower's side (Fannie Mae Selling Guide B4-1.3-12):

• The lender gives you a disclosure explaining its ROV process when it gives you the appraisal.
• Only one borrower-initiated ROV is allowed per appraisal.
• Your request identifies the unsupported, inaccurate or deficient areas, adds up to five comparable properties with their data sources, such as the MLS listing number, and explains why the new data supports a change.
• Once the loan closes, you can't submit one.

A jumbo loan sits outside Fannie Mae's guide, so ask your lender for its ROV process in writing before the appraisal is ordered. An ROV is a request for a second look, not a promise of a new number.

What do I give the appraiser when I list a luxury home?

Facts, never a number. On a loan secured by the buyer's principal home, federal rules bar covered persons, which include real estate agents, from pressuring an appraiser toward a value. The same rule lists "Asking a person that prepares a valuation to consider additional, appropriate property information, including information about comparable properties" as permitted (12 CFR 1026.42).

I'm a former New Jersey home builder and residential remodeler, and I read construction quality and renovation work so the price matches what's really there. A gut renovation and a fresh coat of paint aren't the same improvement.

Want to know what your home should bring before an appraiser ever sees it? Read what your home will sell for, or start with a free home value. See how I handle luxury homes, how I sell homes, and the full plan in the Luxury & Waterfront Guide.

Frequently Asked Questions

Do I have to pay for a copy of my appraisal?

No. A lender can't charge for providing the copy, though it may charge a reasonable fee for the appraisal itself.

How many times can I ask for a reconsideration of value?

On a loan Fannie Mae buys, once per appraisal. For a jumbo loan, ask your lender for its policy.

Can the seller's agent talk to the appraiser?

Yes, within limits. Federal rules allow asking the appraiser to consider additional, appropriate property information, including comparable properties. Pressuring an appraiser toward a value is prohibited.

Does a low appraisal end the deal?

Not by itself. The CFPB suggests asking the seller to lower the price, and talking to an attorney about cancelling if they won't. What your contract allows is your attorney's call.

This is general information, not legal, tax or lending advice. Talk with your lender about your loan and your attorney about your contract.

About the author

Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. Read more about Dennis Mark.

Keep reading

• What is a jumbo loan in Monmouth and Ocean County?
• Maximizing your NJ home value: upgrades and improvements
• What will my home sell for?
• Have a question this didn't answer? Send it to Dennis Mark and it may become the next article.