Short history - we are trying to get our financial house in order. We have good incomes, and good credit scores (700s) - no bankruptcies, loans in arrears, etc, but need to start saving more towards retirement, kids college etc. We also have more debt that we would like (who doesn't), including a variable rate 2nd mortgage, and not much savings. So, we figured, refi the two mortgages into one fixed rate 15 yr mortgage, pay off a couple of high rate credit cards along the way and end up paying no more per month on the one mortgage that the two we have now, and freeing up a bit of cash flow to pay down other bills & put more in savings each month. Sound good right?? We went with a refi/debt consolidation broker who deals with FHA/HUD. OK, these are the guys that are supposed to HELP make it EASY, right?? I never dreamed we'd have any problems at all with this refi. I mean, good credit? Check. Good income? Check. No more than 90% LTV? Check... WRONG!!!!! Stupid HUD/FHA won't give us a loan...get this.....because we have a mother=in=law suite in our house, and the appraiser couldn't find a comparable within a 1 mile radius. Now, granted he found 4! comparables within a ~3 mile radius..... but they aren't close enough for FHA. So, we have MORE square footage, and UPGRADED house, but we can't get a federally backed mortgage because of WHAT?? I mean, take out her fridge and oven and you have a rec room and an extra bedroom - it's not like it's a 2 story guest house or anything! Is that not the stupidest thing you've ever heard?? I'm flabbergasted. I never thought that people with good credit, a nice house in a good neighborhood with well over the minimum income would have problems refinancing a mortgage! I mean, FHA lends to first time homeowners with crappy credit and low income, right? But they won't lend to US? These are the same FHA that has so many houses in foreclosure, right? We are probably the safest bet on a loan you ever saw, and you could sell our house for at LEAST what the apprasal came in for AND we are in the one area of the country where values are still rising, anyway! ARRRRGGGGHHHHH!!!!!!!! un I can only hope the appraiser can do something to make them happy, otherwise we have to start ALL over again with another lender, and then have to explain to THAT lender why FHA wouldn't close on this refi... I just feel sick about this - it makes no sense to anyone but the federal government....and that statement about sums it up.