Cohousing-L Mailing List: FHA/FNMA project approval

[Judy (BAXTER%EPIHUB]

We (Monterey Cohousing) are wrestling with the issue of getting financing, and
getting very frustrated.  The story keeps changing, both ( I think) as people
(lenders, agency people, etc) really understand our structure and, maybe,
because things change. I should make it clear, here, that I am only
peripherally involved in this, so I don't know and haven't wanted to know all
the details.  

My current question relates to the need/utility of getting FHA approval (or VA,
FNMA, I don't know what else).  For a while, we pursued this for, I think, two
reasons:        1. ease of resale financing later
                        2. easier to get conventional financing w/ project 
approved.
Then we were advised that we didn't need it, and pursued independent banks, who
don't "bundle and sell" their loans, and then we started to get the message
that maybe the independents wouldn't be very willing to work with us.  One bank
has a program that might work, but may only have it for the next 120 days, and
there is no way we could meet that timetable ( move in that fast).  We have
a meeting set up for Monday with some development consultants, and will see
what they can contribute.  

So. . . meanwhile, started again with the documents for the Feds.  Has anyone
out there been through this process?  Any hints, war stories?  
Judy

Judy Baxter, Monterey Cohousing Community, (MoCoCo)
Twin Cities Area, Minneapolis/St.Paul Minnesota
e-mail: baxter [at] epivax.epi.umn.edu