topic Re: FHA Approved Properties? in Mortgage Loans

FHA Approved Properties?

chan85 — Tue, 10 Jul 2012 17:54:43 GMT

Supposed to close this month and my LO says that property I want isn't a FHA approved property- i.e. FHA is unwilling to provide loans on properties in that area.

Anyone have experience with this?? Were you able to get around it or get the property approved? Or should I just begin looking for a new house??

I searched the boards and I am apparently the only idiot who has gone this far with a house to not find this out....... :smileyfrustrated:

Re: FHA Approved Properties?

MattieNumNums — Tue, 10 Jul 2012 17:57:09 GMT

Don't bother just move on.

Re: FHA Approved Properties?

chan85 — Tue, 10 Jul 2012 17:58:43 GMT

MattieNumNums wrote:
Don't bother just move on.

Reasons?

Re: FHA Approved Properties?

MattieNumNums — Tue, 10 Jul 2012 18:02:33 GMT

It requires a lot from the Association to get approved and some buildings will NEVER get approved. I went through the same issue, FHA approved and couldn't find anything FHA approved and the properties that were approved most agents put FHA and VA at the bottom of the list (Cash, Conventional, Homepath (were applicable), FHA, and finally VA). I finally found a Homepath property and was able to not only get a great deal for financing but also 3% back in concessions. FHA was a HUGE waste of time for me (I even had a pretty good down for an FHA loan 10% down.)

Edit: If this is a house and its not FHA approved that means its either not going to pass inspection or appraisal.

Re: FHA Approved Properties?

chan85 — Tue, 10 Jul 2012 18:06:47 GMT

MattieNumNums wrote:
It requires a lot from the Association to get approved and some buildings will NEVER get approved. I went through the same issue, FHA approved and couldn't find anything FHA approved and the properties that were approved most agents put FHA and VA at the bottom of the list (Cash, Conventional, Homepath (were applicable), FHA, and finally VA). I finally found a Homepath property and was able to not only get a great deal for financing but also 3% back in concessions. FHA was a HUGE waste of time for me (I even had a pretty good down for an FHA loan 10% down.)

Edit: If this is a house and its not FHA approved that means its either not going to pass inspection or appraisal.

Its a townhouse, already paid for inspection. No serious problems. No appraisal yet because of this.

Re: FHA Approved Properties?

webhopper — Tue, 10 Jul 2012 18:06:56 GMT

chan85 wrote:
MattieNumNums wrote:
It requires a lot from the Association to get approved and some buildings will NEVER get approved. I went through the same issue, FHA approved and couldn't find anything FHA approved and the properties that were approved most agents put FHA and VA at the bottom of the list (Cash, Conventional, Homepath (were applicable), FHA, and finally VA). I finally found a Homepath property and was able to not only get a great deal for financing but also 3% back in concessions. FHA was a HUGE waste of time for me (I even had a pretty good down for an FHA loan 10% down.)

Edit: If this is a house and its not FHA approved that means its either not going to pass inspection or appraisal.
Its a townhouse, already paid for inspection. No serious problems. No appraisal yet because of this.

Dont order the appraisal yet... and see if you can get your money back for the inspection if the inspection hasn't been completed. My sister put an offer in on a townhouse and the first thing I told her to do was to see if it was an FHA approved unit.

Re: FHA Approved Properties?

MattieNumNums — Tue, 10 Jul 2012 18:09:39 GMT

How did it get this far???

The HOA is going to have to file all the necessary paper work and pay any fee's necessary to get FHA approved.

Edit: If the building is on a land lease it will never be FHA approved FYI.

Re: FHA Approved Properties?

MattieNumNums — Tue, 10 Jul 2012 18:08:54 GMT

I am surprised it got as far as OP is saying. Usually in the offer letter it lists the type of loan etc. You would think either agent would put red flags up at that point.

Re: FHA Approved Properties?

chan85 — Tue, 10 Jul 2012 18:12:36 GMT

MattieNumNums wrote:
I am surprised it got as far as OP is saying. Usually in the offer letter it lists the type of loan etc. You would think either agent would put red flags up at that point.

My letter DID say FHA!! But I don't know if either one of them knew that the property wasn't FHA approved. I already paid for the inspection, was done in MAY! Was a short sale and just got the approval for everything about a week ago.....

Re: FHA Approved Properties?

MattieNumNums — Tue, 10 Jul 2012 18:31:53 GMT

If you can put 5% or 10% down you can get a conventional loan at a decent rate (4.25%).

Re: FHA Approved Properties?

chan85 — Tue, 10 Jul 2012 18:38:25 GMT

I wish I could. That was why I wanted the assistance program. 3.5% + $5k for closing/down pymnt asst..... Even my LO was like it said FHA financing on the letter, why did no one catch it!?

Re: FHA Approved Properties?

MattieNumNums — Tue, 10 Jul 2012 18:45:15 GMT

Best thing to do would be contact the HOA and find out whats keeping them from FHA. It might be tenant to renter ratio, land lease, funding, maint., or just paper work.

Re: FHA Approved Properties?

chan85 — Tue, 10 Jul 2012 18:48:51 GMT

MattieNumNums wrote:
Best thing to do would be contact the HOA and find out whats keeping them from FHA. It might be tenant to renter ratio, land lease, funding, maint., or just paper work.

Already put in a call and sent and email. Waiting for a response.....

Re: FHA Approved Properties?

MattieNumNums — Tue, 10 Jul 2012 19:27:43 GMT

Good Luck!!!

Re: FHA Approved Properties?

chan85 — Tue, 10 Jul 2012 19:44:50 GMT

Just heard from HOA. Not trying to get FHA approved. Terminating contract this evening :(

Re: FHA Approved Properties?

webhopper — Tue, 10 Jul 2012 19:49:25 GMT

I'm sorry :(

Re: FHA Approved Properties?

MattieNumNums — Tue, 10 Jul 2012 21:20:57 GMT

Sorry to hear that.

Have you looked into Homepath? Not sure what area you are in but in my area we had a bunch of great Homepath properties and so far its been a smooth process.

Re: FHA Approved Properties?

JusdoNit — Tue, 10 Jul 2012 22:11:26 GMT

My heart dropped when I read this. So sad to read and empathize with your disappointment:smileyembarrassed:

Re: FHA Approved Properties?

chan85 — Wed, 11 Jul 2012 01:08:26 GMT

Thanks guys. Not all hope is lost. Long story short, we are checking to see what the legal description of the property is- condo or townhome.

Condo, we have to terminate and start looking for something else (which we already are looking at listings).

Townhome, we can proceed!

I say everything happens for a reason, perhaps the day after I closed, the pipes would have burst or something....

Re: FHA Approved Properties?

Booner72 — Wed, 11 Jul 2012 01:09:30 GMT

I am so very sorry. However, I do believe that the universe is out there watching over you - and knew this wasnt the right decision for you. I guarantee you, you will look back and KNOW for a fact that this was the best thing that could have happened. IDK if that is going to be in a month, a year, or ten, but you will see.

Take all you learned during this long process, pull your socks up, after you have given yourself a break, and get back to it when you are ready. I'd think about a new agent. Clearly that person's mistake in my opinion. Or you can have them take your inspection fee out of their commission and give it to you in cash when you DO close, which you will!