Right now my file is "suspended" because the appraiser listed our house as a condo. It is a single family home with an association because we have a pool, park, and what not. Anyways, I was just told FHA doesn't issue loans for new construction condo's. I called my lender and they said they might have to get it reissued as a Planned Unit Development instead. If they can do that, then it will be fine.
I started this new construction home in September, and this issues comes up 2 weeks prior to closing? I'm stressed to no end and am crossing my fingers that this has a positive outcome. This is the most stressful process I have encountered in my 32 years....
Anyone else run into a similar issue?
Starting Score:2/1/16 565
I had a similar issue with the original VA mortgage on my unit. Because the units are attached to each other the appraiser noted it as a condo. It was not new construction but I don't think that totally factors in. It is in fact a PUD where I own the building and land. In a condo I only own the space inside and that affects value. I do know with the VA that the PUD had to be on a pre-approved list. Don't know if that is an issue with FHA or not but you may want to ask questions. I can't imagine them going this far without the property / development being approved.
My appraiser was fairly unresponsive to the bank / title company messaging him and it took about two weeks for him to change the check box on his appraisal form and resubmit it. Hopefully yours is more cooperative.
Starting Score: 500's
I have a background in Planning, worked on many, many subdivisions in my time....it is amazing how many people do not understand the difference. Like the previous person indicated, check the subdivision map. Lots of people have assumed my development is condo (because homes are clustered, common areas, etc)...its not, its a PUD, issued did just come in my refi, but was put to rest right away.
Funny thing, essentially the exact same develpment, same devleoper, floor plans, etc...all detached and separate parcels in the adjoing city (I almost bought there first) is a condo development.
Thank you all for the reassurance everyone....I spoke to the banker last night who spoke with the appraiser. The appraiser basically needs to reissue the appraisal report as a Planned Unit Development. I am back in process after being suspended.
Looks like the only things I am waiting for is a new completion date since the house isn't finished, then I need the Certificate of Occupany.
When do I find out I am "Clear to Close?" Does that happen before receiving the completion date and getting the C of O, or after? I don't think I can handle much more of this up and down stuff.
They are digging our driveway and installing the flooring inside right now. Not much left to do!! I wish I was more excited than nervous, but right now the anxiety and nervousness trumps any and all excitement!!