Posted on: 22nd Sep, 2010 03:35 pm
My boyfriend entered into a 45-day escrow to purchase a condo. The condo complex is on the FHA-approved list. His credit score is 714. He has a steady job working for the City of Santa Maria (over 4 years) and was pre-approved to purchase a home in the amount of $175,000. This condo he was trying to buy was $107,500.
He just found out that the underwriter is denying the loan because the HOA delinquency rate exceeds 15%. Is there anything that can be done to get around this? The rate in this complex is 33% and has been for the past year and a half (I called the HOA management company to check). Three other FHA loans were done in the past 6 years and apparently none of their underwriters asked for this condo cert. We were told that some underwriters ask for it and some don't... guess it was our bad luck that our underwriter did ask.
Both of us are extremely upset over this. I have been told by a realtor that there is NO complex in our town that can achieve that low a delinquency rate because people are walking away from their homes as a result of the housing crisis and not being able to afford the adjusted payments on their mortgages. It doesn't seem like the rate has anything to do with his individual qualification to buy, and if they get a good solid owner in there who WILL pay his HOA fees, won't that be a plus? Is there anything that we can do about this? We are desperate.
He just found out that the underwriter is denying the loan because the HOA delinquency rate exceeds 15%. Is there anything that can be done to get around this? The rate in this complex is 33% and has been for the past year and a half (I called the HOA management company to check). Three other FHA loans were done in the past 6 years and apparently none of their underwriters asked for this condo cert. We were told that some underwriters ask for it and some don't... guess it was our bad luck that our underwriter did ask.
Both of us are extremely upset over this. I have been told by a realtor that there is NO complex in our town that can achieve that low a delinquency rate because people are walking away from their homes as a result of the housing crisis and not being able to afford the adjusted payments on their mortgages. It doesn't seem like the rate has anything to do with his individual qualification to buy, and if they get a good solid owner in there who WILL pay his HOA fees, won't that be a plus? Is there anything that we can do about this? We are desperate.
Welcome villarreal_m,
It will depend upon the underwriter as to what things he will look into when he agrees to approve the mortgage. You should try and negotiate with the underwriter in order to get the loan. If he doesn't agree to it, then you should contact the other local lenders and try to get a mortgage.
It will depend upon the underwriter as to what things he will look into when he agrees to approve the mortgage. You should try and negotiate with the underwriter in order to get the loan. If he doesn't agree to it, then you should contact the other local lenders and try to get a mortgage.