Re: mortgage trouble
From: Jim Snyder-Grant (jimsgnewview.org)
Date: Wed, 11 Oct 2006 19:24:50 -0700 (PDT)
None of our sales at New View (Acton MA) have involved FHA or VA
loans, but I can see that it is true that FHA loans aren't made to
condos that have ROFR clauses.

Here's a shortcut to the appropriate HUD handbook:

http://tinyurl.com/mlzq8

(this goes to HUDclips.org, where all the HUD handbooks are stored).

Look for the word 'refusal' (it's in section 8E).

We're market rate housing in an expensive community, so I doubt we
will see buyers that can afford one of our homes AND would be eligible
for FHA assistance. But I think the VA loans are not income-limited -
I don't know the details.

Our condo units ARE eligible for the secondary loan market - ie they
have been approved by FNMA. That's very important for way more buyers
than FHA or VA eligibility. A lot of the boilerplate in our docs is
specifically tailored to help obtain that eligibility.

-Jim


On 10/11/06, MikeAngelastro [at] comcast.net <MikeAngelastro [at] comcast.net> 
wrote:
Please my reply to Susan Hedgepath.  Here it is below.
---------------------------------------------------------------------------------
You will immediately make your units unavailable for FHA insured loans.  The 
FHA views these clauses as discriminatory.  Also VA loans would be excluded.

This decreases the flexibility of prospective buyers.  In our community it has 
meant higher move in costs on at least three occasions I know of.

-------------- Original message --------------
From: Catya Belfer-Shevett <catya [at] homeport.org>

> I'd be interested to know this as well, and also whether any of the MA
> communities have experienced this.
>
> - catya
>
>
> Sharon Villines wrote:
> > On Oct 10, 2006, at 7:32 PM, Mary English wrote:
> >
> >> Our community, Wasatch Cohousing, is reviewing our right of first
> >> refusal clause this month, because prospective purchasers are being
> >> refused morgages due to that clause.
> >
> > Why are banks refusing mortgages? It seems that all they would care
> > about is that someone would purchase the unit -- that it could be sold.
> >
> > I would understand if the clause said the community had to approve the
> > buyer. That isn't what right of first refusal means.
> >
> > Sharon
> > -----
> > Sharon Villines
> > Takoma Village Cohousing, Washington DC
> > http://www.takomavillage.org
> >



--
Jim Snyder-Grant
18 Half Moon Hill
Acton MA 01720
978 266-9409

  • Re: mortgage trouble MikeAngelastro, October 11 2006
    • Re: mortgage trouble Jim Snyder-Grant, October 11 2006

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