A latest pattern in the industry has been using appraisal management corporations , which critics declare depend on real estate appraisers that aren’t conversant in the neighborhoods they work in. When a loan is used to finance the appraisal hole in a purchase order and rehab transaction, the borrower could obtain two mortgages, one to cover the purchase worth of the property, and a second to finance rehab. The purchase mortgage could be held by a conventional lender; the rehab mortgage might have a subsidized price and be financed and held by a nonprofit. Alternatively, a lender might approve one mortgage that mixes both the acquisition price and rehab costs.