|FHA/FNMA project approval||<– Date –> <– Thread –>|
|From: Hungerford, David (dghungerforducdavis.edu)|
|Date: Fri, 10 Jun 94 17:35 CDT|
On 6/10 Judy Baxter asked about FHA/FNMA etc approval war stories We spent hundreds of man-hours on this stuff, but that doesn't mean we learned a lot. Since you're in California, you might be able to do what we did, and that is to go with CHFA (California Housing Finance Agency.) However, the only advantage we found there was that we could get a lower interest rate (8.675). That is somewhat irrelevant now. Observations: 1) FHA, CHFA and other programs designed to facilitate "affordable" housing often come with burdensome, if not ridiculous requirements. For example, FHA requires home sites to be soaked with termicides--something we wouldn't do. Do you have members who can't come up with 20% down? If not, then you don't need the Fed programs (by the way mortgage insurance for <20% down loans is usuriously expensive, say $3500 for a 70K loan. Try to find a way to get those downs up to 20% 2) Don't most lenders "bundle" their loans on the secondary mortgage market, whether they're bought by some alphabet agency or Weyerhauser? 3) Rather than a "consultant," try talking to a few mortgage brokers about loan packages. It does appeal to these people to essentially do the paperwork once, and then get paid for it 10, or 20 times. Let them wade into the quagmire for you. 4) If you have to do the construction loan, try talking to a bank about a rollover provision which would allow your group to save points at conversion from construction to home loans. 5) good luck, I empathize with you guys at this stage. David Hungerford Muir Commons, Davis CA dghungerford [at] ucdavis.edu
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