Re: FHA Approval | <– Date –> <– Thread –> |
From: Ann Zabaldo (zabaldoearthlink.net) | |
Date: Mon, 31 Mar 2014 12:03:39 -0700 (PDT) |
Hi all — Following this thread is certainly interesting! Like working my way through a maze … Now I hear we’re talking about three different things: 1. FHA loans 2. Conventional mortgages 3. Construction loans Oh yes … and if we go back to a connecting thread … denial of a reverse mortgage … As I understand it, FHA loans are federally insured mortgages given through conventional lenders. FHA simply guarantees the loan. Someone w/ more experience can clarify this for this list. Conventional mortgages such as the “take out” mortgages for condo or coop sales or a resale of a detached home is the mortgage you could get walking into 1st Acme Bank. Construction loan is part of the development package put together by your developer (which may be YOU.) A professional developer brings money, experience and expertise to the table. If she or he is not bringing these three things to the table then you need to think carefully about who IS bringing them to the table. An experienced developer will come w/ a budget plan not only for pre-development and construction but also the mortgages for the buyers of the units. Otherwise, he/she could end up w/ a beautiful project and no ability to sell it. If people can’t get mortgages they can’t buy. Both Takoma Village Cohousing and Eastern Village Cohousing in DC and MD respectively were built w/ “cohousing” in the name. The developer made sure he had the “take out” mortgage financing at the same time he had the construction loans. There has been at least one case at Eastern Village where a resident trying to refinance w/ the same bank that held his mortgage was denied refinancing because “cohousing” was present somewhere in the documentation. The bank demanded proof that the project was a condo overlooking the fact that the condo docs given to the bank CLEARLY state Eastern Village Cohousing Condominium. And then had all the verbiage about EVC being a condo under Maryland law, etc. etc. etc. I think this kind of thing is due to: 1. Ignorance — that’s why I appreciate Sharon’s position on facing the issue head on 2. Inability to read or fear of making a deduction based on reading: it says “condo.” Maybe it’s a condo … 3. Fear — real estate is very conservative. Don’t do anything out of the ordinary … 4. Overwork 5. An immediate excuse not to make a loan 6. Regional “norms” Takoma Village Cohousing has had four resales since that issue w/ Eastern Village noted above. Two were for all cash but two were not. Both sailed through no problems. I understand things in other parts of the country are very different than here in DC. It’s unfair to compare DC w/ Nebraska, Alabama, Nevada or California. We’re our own little bubble unto ourselves. Sometimes I think I live in a wholly different solar system. But … just for what it’s worth … sharing my experience in this market. Best -- Ann Zabaldo Takoma Village Cohousing Washington, DC Principal, Cohousing Collaborative, LLC Falls Church VA 703-688-2646 On Mar 31, 2014, at 2:23 PM, Kay Wilson Fisk <kwilsonfisk [at] comcast.net> wrote: > >>>> In the meantime, I would still recommend keeping "cohousing" > out of your formal legal name it you want access the competitive > mortgage rates. > > Agreed. In our case, we were only able to find one bank in our > county willing to give us a construction loan, and that was only > because, while they were very nervous about the "cohousing" > label, they "worshipped" our construction contractor, who had > developed the highly successful Poulsbo Place. > > Unless you have truckloads of cash, FHA loans won't do you any > good without a construction loan! > > > Kay Wilson > Meadow Wood Condominium > AKA Meadow Wood Cohousing > > _________________________________________________________________ > Cohousing-L mailing list -- Unsubscribe, archives and other info at: > http://www.cohousing.org/cohousing-L/ > >
- Re: FHA Approval, (continued)
- Re: FHA Approval Philip Dowds, March 31 2014
- Re: FHA Approval Sharon Villines, March 31 2014
- Re: FHA Approval Kathryn McCamant, March 31 2014
- Re: FHA Approval Kay Wilson Fisk, March 31 2014
- Re: FHA Approval Ann Zabaldo, March 31 2014
- Re: FHA Approval Diana Carroll, April 1 2014
- Re: FHA Approval Sharon Villines, April 2 2014
- Re: FHA Approval Diana Carroll, April 2 2014
- Re: FHA Approval Diana Carroll, April 1 2014
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