New Homes can't close FHA

[TraceyMooreRN]

So, explain to me that the TV will not write in their contracts that they can't sell new construction FHA or VA?
Have a contract due to close 3/12- found out 3 days ago--can't use my FHA loan. Which brings cash to close up another 15,000 + and nobody seems to care or offer to help with closing cost!

[graciegirl]

So, explain to me that the TV will not write in their contracts that they can't sell new construction FHA or VA?
Have a contract due to close 3/12- found out 3 days ago--can't use my FHA loan. Which brings cash to close up another 15,000 + and nobody seems to care or offer to help with closing cost!

I know the developer will not accept VA loans on new homes. It slows down the building and closing process I guess.

Here is a recent thread on the same subject.
https://www.talkofthevillages.com/forums/ask-expert-about-villages-florida-real-estate-300/va-lender-70311/

and another on the same subject. Hope this helps.

https://www.talkofthevillages.com/forums/villages-florida-new-members-forum-115/va-loan-certificate-process-32079/

[aussiemom]

So, explain to me that the TV will not write in their contracts that they can't sell new construction FHA or VA?
Have a contract due to close 3/12- found out 3 days ago--can't use my FHA loan. Which brings cash to close up another 15,000 + and nobody seems to care or offer to help with closing cost!

Can't comment on new homes since we purchased pre-owned, but I am sure you could have used VA or FHA on a pre-owned without any problem. Were you preapproved with your FHA loan prior to purchasing? And didn't anyone say anything to you before since you would have had a prequalification letter showing it being an FHA loan? Sorry I don't have any leads for obtaining the additional $15,000. Do you have 401Ks or Roth IRAs you can tap (depending on your age of course).

[TraceyMooreRN]

I know the developer will not accept VA loans on new homes. It slows down the building and closing process I guess.

Here is a recent thread on the same subject.
https://www.talkofthevillages.com/forums/ask-expert-about-villages-florida-real-estate-300/va-lender-70311/

and another on the same subject. Hope this helps.

https://www.talkofthevillages.com/forums/villages-florida-new-members-forum-115/va-loan-certificate-process-32079/

I don't understand when you say that no one "seems to care or offer to help with closing costs"?



Do you mean a buyers assist? I think because they don't have to make any concessions to sell homes here, but perhaps I misunderstand what you are saying.

Entered into contract for purchase. Paid deposit. Paid appraisal. Set to close 3/12. Realtor calls Wednesday and informs me-he didn't know I was going FHA and I can't use FHA. Their suggestion: obtain other lending or pick another house.
Doesn't seem fair- or legal---they didn't disclose that I could not use certain financing when I entered into the contract. I am set to close, I am ready--and they say they won't take FHA so the closing won't happen unless I obtain other financing- which cash to close increased 15,000 and I might have to have a second appraisal-450.00....
I was suppose to get a "builders discount" House 338,995 with builder discount 328,995. Appraisal came back at 330,000 :cus:

[graciegirl]

///

[gomoho]

Gracie - I love you to death, but the fact that the builder has been so successful in creating this paradise for us doesn't excuse TV sales' agent missing the fact this person was using FHA. On most real estate contracts the type of financing has to be spelled out - not sure if that is the case with TV new home contract, but any agent worth his salt would have explored that early on. Because business is basically dropped in their laps it seems the sales agent don't try quite as hard as they need to in the real world. They need to remember if not for the buyer they wouldn't get a paycheck. And if not for the buyer's Mr. Morse would not have had the success he has enjoyed as well. So hats off to all of us that have purchased homes here to keep things rolling.

[graciegirl]

...

[rp001]

Every real estate contract I've ever seen actually discloses type of financing required. If you look closely, somewhere in it you should see the word "conventional" and that eliminates both fha and va...I've purchased 11 homes in Fl in my life...Never bought from the villages though, I purchased mine through mls..

[TraceyMooreRN]

Every real estate contract I've ever seen actually discloses type of financing required. If you look closely, somewhere in it you should see the word "conventional" and that eliminates both fha and va...I've purchased 11 homes in Fl in my life...Never bought from the villages though, I purchased mine through mls..

Nope--not in the wording. Had several people review. Was told the by the Villages 'we are not concerned with your financial lending' we use a contract with specific guidelines when to close, cost, etc.

I sold Real Estate for 13 years in Virginia--yes, in Virginia we used that format- and here with resales I hear that is possilbe. Nothing is written in the new spec home contract I purchased. :shrug:

[capecodkev]

At least the appraisal came in higher than your discounted sale price.

[Mack184]

doesn't excuse TV sales' agent missing the fact this person was using FHA......but any agent worth his salt would have explored that early on. Because business is basically dropped in their laps it seems the sales agent don't try quite as hard as they need to in the real world.
People hire plumbers, electricians & real estate brokers for a reason. They are professionals in their field and you are not. When you use a real estate broker you are essentially "hiring" them to be YOUR representative and look out for YOU in a process that you are not skilled in. This is a person you are supposed to have a trusting working relationship with. I agree, the sales reps are NOT doing their job if they are not asking you all the right questions at the outset and giving you all the necessary information for you to make an informed choice and purchase. It's bad enough if you get bum information from a sales rep at Best Buy when you're buying a computer. It's VERY bad if you get bad information when you're plunking down 300 large for a home.

[gomoho]

Mack184 - in Florida real estate transactions are done by "transaction agents" they do not have a fiduciary responsibility to either the buyer or seller unless a specific agency relationship is established in writing.

[Cantwaittoarrive]

When we were looking at new homes we were going to use FHA told our TV agent we were using FHA 4 months before we looked at houses, had the agent check to make sure they would take FHA, received an email from the agent saying they accepted FHA on new homes. Then we looked at inventory homes for 2 full 8 hour days, found a new home and then as we were signing the contract were told by our TV agent that we needed $50k in cash within 7 days and by the way they don't accept FHA, also if you fail to close according to the contract you will lose the $50K on deposit. Our agent did say that someone above her head could decide to return the $50K if you don't close but she couldn't say for sure that they would, if you fail to close they look at each case on a case by case basis. Well we had to do a quick shuffle with investments and we came up with $250K and just paid cash but the way it worked out it left a bad taste in our mouths

[Cantwaittoarrive]

Every real estate contract I've ever seen actually discloses type of financing required. If you look closely, somewhere in it you should see the word "conventional" and that eliminates both fha and va...I've purchased 11 homes in Fl in my life...Never bought from the villages though, I purchased mine through mls..

Custom and inventory homes (new homes, spec homes) have contracts that do not have a contingency for financing, therefore they don't mention financing. On inventory / new homes the contract doesn't spell out what % you have to put down by what date, there is a spot for it but it's blank to be filled out by the agent at the time of contract negotiation, however TV really doesn't allow negotiation so in my case we found out it was $2.5K (spelled out in contract) when you sign and then another $50K (not spelled out)within 7 days (non-refundable) we found this out even though we got copies of the contract 4 months before coming to actual buy and in-spite of asking questions about deposits and FHA financing and receiving responses in writing via email.

[Mack184]

Mack184 - in Florida real estate transactions are done by "transaction agents" they do not have a fiduciary responsibility to either the buyer or seller unless a specific agency relationship is established in writing.
We had a licensed realtor, not a "transaction agent" when we bought our Florida house. However..even if you are just a "transaction agent" that should not be an excuse for not doing a good job for your client.

[gomoho]

You missed my point - all REALTORS or sales agents in TV act as "transaction agents" with no fiduciary responsibility unless established in writing. If they act as a buyer's agent and want to show you a property their firm has listed you have to change over to "transaction agent" because dual agency is not legal in Florida.
I agree they are supposed to be forthright and honest, but that is a far cry from a fiduciary arrangement.

[graciegirl]

I hope that Tracey MooreRN who sold her villa and is trying to buy a Lantana, a new Lantana will come back on and tell us what happened.

I hope it works out for her.

[TraceyMooreRN]

Villa closes this Tuesday, and I will scrape up another 15k...from where I am not sure--maybe a "gift". Just stinks all the way around. I am just a number in the pool of buyers. They certainly don't need "my" purchase.
However- if the Realtor had been forthcoming when writing the contract- or even a freaking checklist- Like "we can't use FHA to close new construction"--then I would NOT have sold my villa and would not be scraping up more $$$ that I was expecting.
I will do my best--if you see a lady on the corner near a sales center with a sign reading "BEWARE TV WON'T ALLOW YOU TO CLOSE VA/FHA ON NEW CONSTRUCTION" Just beep your horn--cause it is ME!!! Feel free to drop a few pennies n the bucket too...lol
:pepper2:

[rjm1cc]

Villa closes this Tuesday, and I will scrape up another 15k...from where I am not sure--maybe a "gift". Just stinks all the way around. I am just a number in the pool of buyers. They certainly don't need "my" purchase.
However- if the Realtor had been forthcoming when writing the contract- or even a freaking checklist- Like "we can't use FHA to close new construction"--then I would NOT have sold my villa and would not be scraping up more $$$ that I was expecting.
I will do my best--if you see a lady on the corner near a sales center with a sign reading "BEWARE TV WON'T ALLOW YOU TO CLOSE VA/FHA ON NEW CONSTRUCTION" Just beep your horn--cause it is ME!!! Feel free to drop a few pennies n the bucket too...lol
:pepper2:
At least you are giving those that follows a warning. Remember the Realtor represents the person who pays him, not the other party. If you paid the Realtor to find the home and told him your source of financing I would ask him to resolve the problem and certainly would not pay him if he did not perform. If the Realtor was selling the property to you I think you are out of luck. You needed to hire your own representative or represent yourself. I have seen purchase contracts in other communities that say no VA and FHA financing but in those communities they required that mortgages could not exceed 80% of the purchase price and thus they could not use VA or FHA.

[KayakerNC]

Villa closes this Tuesday, and I will scrape up another 15k...from where I am not sure--maybe a "gift".

Be very, very careful about cash gifts. After the housing bubble burst, there are some very restrictive regulations on down-payment money.
Basically, the banks want to make sure that you’re not getting a second loan against the property that they’re going to put a mortgage on.

[Cantwaittoarrive]

At least you are giving those that follows a warning. Remember the Realtor represents the person who pays him, not the other party. If you paid the Realtor to find the home and told him your source of financing I would ask him to resolve the problem and certainly would not pay him if he did not perform. If the Realtor was selling the property to you I think you are out of luck. You needed to hire your own representative or represent yourself. I have seen purchase contracts in other communities that say no VA and FHA financing but in those communities they required that mortgages could not exceed 80% of the purchase price and thus they could not use VA or FHA.

You don't have the option of "hiring" a realtor of your own when buying a new house from TV

[TraceyMooreRN]

Need a Real Estate Attorney at this point. I can now close either way- only difference, with failure to notify me that they won't accept my FHA loan until less than 2 weeks to close..I need another 15,000 to close. Refusing to assist with closing saying "we just aren't going to do this". If they had disclosed this information--I would not be in this situation...Homeless tomorrow- new owners of villa have agreed to let us stay till 20th. Closing on new house the 12th? Or am I??? Frustrated!!!

[gomoho]

Wow - so sorry to hear TV sales people are being so hard nosed. Seems like they should be trying to do something to assist you since their sales person failed to give you the correct information. Hope it all works out for you and doesn't leave you soured on TV lifestyle.

[JB in TV]

We sat down to sign our contract to buy a spec home late in November 2012. At that time, we were made quite aware of the "one sided" wording of the contract, and the "take it or leave it" attitude of the developer. In fact, we got up and walked out, with the sales person and manangers blessing...so we could digest what we were reading in the contract. It was made very clear to us that they didn't care how we paid for the house, just that once we signed, we had to close when they said we were closing, or we would pay dearly for any variations. Earlier, it was HIGHLY suggested by the sales lady that we contact their mortgage company before signing the contract...as there were NO contingencies at all in the contract.

Bottom line for us, was we went back to our temporary housing, and read the contract start to finish, and decided (since we had been "pre-qualified" by Citizens Mortgage) to sign and buy. Wife and I have much real estate experience (both professionally and personally). We have been party to many new home contracts. Frankly, most new home builders have very one sided contracts, but this one was the worst.

What it boils down to, after this rather long post, is: read and understand everything you intend to sign. The sales people here are very nice, become friends, are very helpful, etc. but work only for the developer.

To the OP...I doubt they mislead you, but how would they know you intended to use an FHA loan unless you had mentioned it? Who is your lender? Had they ever dealt with The Villages new homes before?

[TraceyMooreRN]

:cus: Yep--oh, they did offer I try financing with Citzen's First. Who- turned me down. But- Suntrust Mortgage is a go--FHA 3.25 locked in with 65,000 down and cash to close. Or 3.74 Conventional with 80,250 down and cash to close.
I just dont understand why they can't assist. I mean- I can close FHA and they are letting me- after I have a signed contract. I am just a "number" of many thousands of customers. I do have a loud voice..either way I am buying this Lantana--and my voice will be heard :cus:

[TraceyMooreRN]

We sat down to sign our contract to buy a spec home late in November 2012. At that time, we were made quite aware of the "one sided" wording of the contract, and the "take it or leave it" attitude of the developer. In fact, we got up and walked out, with the sales person and manangers blessing...so we could digest what we were reading in the contract. It was made very clear to us that they didn't care how we paid for the house, just that once we signed, we had to close when they said we were closing, or we would pay dearly for any variations. Earlier, it was HIGHLY suggested by the sales lady that we contact their mortgage company before signing the contract...as there were NO contingencies at all in the contract.

Bottom line for us, was we went back to our temporary housing, and read the contract start to finish, and decided (since we had been "pre-qualified" by Citizens Mortgage) to sign and buy. Wife and I have much real estate experience (both professionally and personally). We have been party to many new home contracts. Frankly, most new home builders have very one sided contracts, but this one was the worst.

What it boils down to, after this rather long post, is: read and understand everything you intend to sign. The sales people here are very nice, become friends, are very helpful, etc. but work only for the developer.

To the OP...I doubt they mislead you, but how would they know you intended to use an FHA loan unless you had mentioned it? Who is your lender? Had they ever dealt with The Villages new homes before?

Well--MY lender (Suntrust) was also nice enough to MESS UP. I was prequalified with Suntrust FHA. Signed contract- and then got a call 2 days after gave contract to Suntrust. She didn't check the "Maximum allowed" limit for FHA for Sumter County. Emails exchanged- her stating her error to my realtor stating we could ONLY use FHA-due to non-occupying co-borrower and limited assets. This meant estimated cash/close went from 25,000 to 65,000
His reply--"you messed up-how are you going to help OUR customers"? Never mentioned to us IT DOESN'T MATTER--I messed up too-YOU Can't close FHA anyway--even if you scrape up the 65,000!! Since he NEVER told me that- to obtain the difference: Sold Car, Sold Race Car, Sold Villa to cash value with quick close and sold golf cart---done, 65,000 ready, Appraisal Complete--bought new furniture for house, hired movers, hired sub-contractors to do minor changes on house
THEN--another week and half later--SORRY, We have a BIG PROBLEM..can't accept FHA!!!:cus::cus::cus::cus::cus:

[GaryW]

My understanding from some real estate big wigs is that in a deeded 55 plus community, the seller can and most do the same will not accept FHA or VA financing, lot of reasons, some of which you would have to check into.. But I know VA wise TV is not a certified VA builder. FHA wise kind falls under the same cracks as VA in which the builder is more responsible for cost that they do not want no part of. This applies to all new house sold under The Villages, even the family sections.
If you want to live close to TV, then Parkwood on CR-101 will take anything. No cart path to The Villages though. Unless you are street legal and drive down CR-101.

[TraceyMooreRN]

Well- the clear difference is, during the negotiation period (ie BEFORE the seller signs contract). What about specific performance? I am set to close- and thus can't because TV won't- so "technically" they are in default.
When I advised my Realtor back around 2/15 the error the bank made on the cap of FHA maximum funding--HE advised "attempt to pull from 401K, how about a line of credit". Never did he say "OMG--You can't use FHA anyway". He only attempted to have me gather funds to make the deal work. HE KNEW the situation because of FHA cap was causing me issues with coming up with funds (the difference of 25,000 vs 65,000)...

[graciegirl]

Well- the clear difference is, during the negotiation period (ie BEFORE the seller signs contract). What about specific performance? I am set to close- and thus can't because TV won't- so "technically" they are in default.
When I advised my Realtor back around 2/15 the error the bank made on the cap of FHA maximum funding--HE advised "attempt to pull from 401K, how about a line of credit". Never did he say "OMG--You can't use FHA anyway". He only attempted to have me gather funds to make the deal work. HE KNEW the situation because of FHA cap was causing me issues with coming up with funds (the difference of 25,000 vs 65,000)...




I quite honestly do not think you can really get an ounce of flesh from the developer in this situation or change anything.

I say that simply because they have sold thousands and thousands and thousands of homes and have probably encountered every scenario and I would have to think that they have evaluated every legal ramification in the many years they have built their business. I personally think..it is what it is, and probably would end up your word against the Rep's word, since negotiation on the sale of a new home is literally unheard of here.

A seller does NOT have to take VA.

I wasn't clear on FHA, but you say now that they are going to accept your FHA loan? Is this on a home you are contracting to build or a spec?

I think it boils down to that they have something you want to buy and they will sell it to you on their terms, and they can, and they have and they will.

[mickey100]

I'm sorry you are going thru this scenario. You are right - the people who sell real estate here are salespeople that work for the developer. They are not required to be licensed real estate agents; they do not have any allegiance to you no matter how friendly they may be. The Villages does not care about you or having a satisfied customer - their bottom line is selling as many homes as possible and making their profit.

[graciegirl]

I'm sorry you are going thru this scenario. You are right - the people who sell real estate here are salespeople that work for the developer. They are not required to be licensed real estate agents; they do not have any allegiance to you no matter how friendly they may be. The Villages does not care about you or having a satisfied customer - their bottom line is selling as many homes as possible and making their profit.

Mickey when you buy here, you may change your mind. I see evidence all around me that the developers give us far more than our money's worth.

Gary Morse is no one's mother and most of us are not property virgins and the OP said she sold real estate in Virginia. We do have some responsibilty in these situations to educate ourselves and ask questions. .

[gomoho]

Mickey100 - you do in fact have to be licensed to sell real estate for The Villages. The difference is you are not a REALTOR - a member of the National Association of REALTORS. You are a sales agent, but definitely licensed.

[mickey100]

Mickey when you buy here, you may change your mind. I see evidence all around me that the developers give us far more than our money's worth.

Gary Morse is no one's mother and most of us are not property virgins and the OP said she sold real estate in Virginia. We do have some responsibilty in these situations to educate ourselves and ask questions. .

I've lived here longer than you Gracie and I'm aware of what the developer gives, and what he takes away when it is financially expedient for him to do so.

[TraceyMooreRN]

I told the "upper management" today- I want NO contact with the Agent. NONE, no emails, no phone calls, no meetings.

I am closing CONVENTIONAL under duress- as far as I am concerned! I am Homeless on the 20th- selling the Villa 3/5/13 and due to close on the Lantana 3/12/13

Scraping every nickel and dime- due to the unforseen cost and certainly NEVER would have entered a contract knowing I had to put in almost a year salary...

I will update when I am done! Signed, sealed and MOVED :-)

Cause I give up--I need the house, I want the house and I'm getting THAT HOUSE! :bowdown::bowdown::bowdown::bowdown::bowdown:

[GaryW]

I told the "upper management" today- I want NO contact with the Agent. NONE, no emails, no phone calls, no meetings.

I am closing CONVENTIONAL under duress- as far as I am concerned! I am Homeless on the 20th- selling the Villa 3/5/13 and due to close on the Lantana 3/12/13

Scraping every nickel and dime- due to the unforseen cost and certainly NEVER would have entered a contract knowing I had to put in almost a year salary...

I will update when I am done! Signed, sealed and MOVED :-)

Cause I give up--I need the house, I want the house and I'm getting THAT HOUSE! :bowdown::bowdown::bowdown::bowdown::bowdown:

I hate to say it, but that is the best,,, you will not win the fight over the FHA deal. I know of one couple that were in the same boat. wanted to use a FHA loan, but salesman never told them they could not. Until the closing department found out the loan they wanted to use.. then the bomb dropped.

At any rate,,, relax now take a deep breath, exhale slowly, take another one then have a toast to the new house..

[Parker]

Well Tracy, I'm just sick for you. What a horrible experience. But after all is said and done, I hope you love and enjoy your new home. I must say you've brought attention to this problem, and hopefully others will be able to benefit from it.

[graciegirl]

In SUMMARY for all people reading this forum who are considering buying a new home here.

You cannot buy here using VA or FHA.

[graciegirl]

I've lived here longer than you Gracie and I'm aware of what the developer gives, and what he takes away when it is financially expedient for him to do so.



I apologize to youmickey100. I thought I remembered you were a seasonal resident who rents here. There are other posters with Mickey in their name and I was incorrect.

But, I don't understand what you mean when you say the developer gives and takes away when it is financially expedient for him to do so.

Can you give an example?

[rhood]

Maybe he means the buffalo ? ?

[graciegirl]

Maybe he means the buffalo ? ?

You are right rhood, removing the buffalo and building homes in that area was financially expedient to the developer. When property is used for animals to graze the tax fee is lower. Then the developer removed the buffalo and built houses there.

This is one of the biggest hijacks in my career. :o Admin and moderators are gonna smack me good in about three minutes.

But you are right rhood!

[gomoho]

In SUMMARY for all people reading this forum who are considering buying a new home here.

You cannot buy here using VA or FHA.

Actually you cannot buy a NEW HOME using VA or FHA - resales are a different story.

[KeepingItReal]

I'm sorry you are going thru this scenario. You are right - the people who sell real estate here are salespeople that work for the developer. They are not required to be licensed real estate agents; they do not have any allegiance to you no matter how friendly they may be. The Villages does not care about you or having a satisfied customer - their bottom line is selling as many homes as possible and making their profit.

:popcorn:

OH BOY! Now you have done it! But I totally agree. Some here for whatever reason just cannot fathom that this is a business in business for only one reason, to make money. You cannot fault a business for doing what they do but they all can and do make mistakes. I too am sorry for this nightmare that could have been so easily avoided. Reminds me so much of another disclosure issue I had with the bond interest which was a direct result of non disclosure which was required by Florida State Law but was not done. If you wish you can appeal it to Jennifer Morse Parr, VP of Sales and Marketing. Though I did not ever actually get to meet with her she did see that I met with Gary Moyer VP of Development and he did correct the problem immediately after numerous other failures by the VCDD and even their attorney. It did require more than one correspondence with even her. I was told by many that it was just the way it was done and nothing could be done to change it but in the end it was changed.

You'll be pretty much on your own but if you are right then go forward!.

[graciegirl]

In Summary for people who are thinking to buy here.

You cannot use VA or FHA financing to buy a NEW HOME. You may be able to buy a resale with VA and FHA financing.

[janmcn]

In Summary for people who are thinking to buy here.

You cannot use VA or FHA financing to buy a NEW HOME. You may be able to buy a resale with VA and FHA financing.

So much heartache could be avoided if The Villages would type up that simple statement and pass it out to prospective buyers, so that there is no question in anyone's mind. Not every buyer reads Talk of The Villages.

[KeepingItReal]

So much heartache could be avoided if The Villages would type up that simple statement and pass it out to prospective buyers, so that there is no question in anyone's mind. Not every buyer reads Talk of The Villages.

Absolutely correct, we had never heard of TOTV until months after our purchase. In our case the Florida Statutes 190 requires it be disclosed and yet it was still not done

[Trish Crocker]

I see one huge problem...the blame is being placed where it doesn't belong. It is NOT the Villages that refuse to sell FHA...why would they care where the money was coming from??? It is the Federal Housing Authority (FHA). They won't loan the money. The new homes in The Villages are apparently not approved by HUD. We found this quite often in Michigan. I completely agree that the agent was not doing their homework...and this has nothing to do with fiduciary duty, it has to do with someone not researching. Since new home purchase contracts in TV do not allow for ANY contigencies at all (finance, sale of current home..etc, etc) the matter of financing does not show up at all..it is assumed that the buyer is approved. I am not criticizing the agent but I have a feeling that whoever the agent was they were unfamiliar with mortgage laws and requirements and if they have only worked in The Villages they had no clue that there was a difference. I feel that whoever trained this person didn't do it properly. I closed many, many FHA deals in my career, the majority of the houses I sold for the first 10 years were FHA. When I moved into a different area I was suprised to find that most of the agents I was working with had no idea about how to process FHA. Since the down payment for FHA is typically around 3%, is it possible to get a 10% conventional loan? I too am very sorry that you have gone thru this and that no one was watching your back. Getting an attorney at this point would probably do you no good at all since he/she can't change federal housing laws. For many years I trained new agents and one of the things I stressed was the fact that no matter who you are representing..buyer, seller, transaction coordinater..whoever...you do it with integrity, honesty and most of all...with knowledge of what you are doing.

[2BNTV]

I see one huge problem...the blame is being placed where it doesn't belong. It is NOT the Villages that refuse to sell FHA...why would they care where the money was coming from??? It is the Federal Housing Authority (FHA). They won't loan the money. The new homes in The Villages are apparently not approved by HUD. We found this quite often in Michigan. I completely agree that the agent was not doing their homework...and this has nothing to do with fiduciary duty, it has to do with someone not researching. Since new home purchase contracts in TV do not allow for ANY contigencies at all (finance, sale of current home..etc, etc) the matter of financing does not show up at all..it is assumed that the buyer is approved. I am not criticizing the agent but I have a feeling that whoever the agent was they were unfamiliar with mortgage laws and requirements and if they have only worked in The Villages they had no clue that there was a difference. I feel that whoever trained this person didn't do it properly. I closed many, many FHA deals in my career, the majority of the houses I sold for the first 10 years were FHA. When I moved into a different area I was suprised to find that most of the agents I was working with had no idea about how to process FHA. Since the down payment for FHA is typically around 3%, is it possible to get a 10% conventional loan? I too am very sorry that you have gone thru this and that no one was watching your back. Getting an attorney at this point would probably do you no good at all since he/she can't change federal housing laws. For many years I trained new agents and one of the things I stressed was the fact that no matter who you are representing..buyer, seller, transaction coordinater..whoever...you do it with integrity, honesty and most of all...with knowledge of what you are doing.

Way to go Trish. A clear and concise explanation. :bigbow:

[Trish Crocker]

I want to add one other thing..and this is NO criticism of you Tracey, you were doing exactly what you were led to believe..this is directed to people that seem to think that the Villages does not care about their customers....you are so wrong. If you are buying a home and know that you are not being represented by an agent (as was stated, Florida does not allow dual agency, which means if a broker has a home listed, as these homes are, the selling agent BY FLORIDA LAW is not allowed to represent the buyer. If you, knowing that you are not represented, choose to purchase a home without at least having someone knowledgeable such as an attorney at least look over your paperwork then you are responsible for the outcome also. We are all investing a lot of our hard earned money. When you made application to YOUR lender, the first thing your lender should have done was make sure the property you were purchasing was approved for FHA financing. This is where the fault actually lies...100%. I'm assuming you were initially 'pre-approved' by your lender, but this pre-approval is totally dependent upon the home being eligible for the program you were using. I can probably bet that the lender was not a local one...anyone doing loans in The Villages would have told you immediately that FHA wouldn't work. At that point, if finances prohibited you from buying the house you wanted, you could have found a beautiful resale and avoided all of this. Put the blame where it belongs..on the lender you chose. Sorry if this sounded harsh but I get tired of everyone enjoying all this place has to offer and then complaining about how greedy and horrible the developers are.

[TraceyMooreRN]

I want to add one other thing..and this is NO criticism of you Tracey, you were doing exactly what you were led to believe..this is directed to people that seem to think that the Villages does not care about their customers....you are so wrong. If you are buying a home and know that you are not being represented by an agent (as was stated, Florida does not allow dual agency, which means if a broker has a home listed, as these homes are, the selling agent BY FLORIDA LAW is not allowed to represent the buyer. If you, knowing that you are not represented, choose to purchase a home without at least having someone knowledgeable such as an attorney at least look over your paperwork then you are responsible for the outcome also. We are all investing a lot of our hard earned money. When you made application to YOUR lender, the first thing your lender should have done was make sure the property you were purchasing was approved for FHA financing. This is where the fault actually lies...100%. I'm assuming you were initially 'pre-approved' by your lender, but this pre-approval is totally dependent upon the home being eligible for the program you were using. I can probably bet that the lender was not a local one...anyone doing loans in The Villages would have told you immediately that FHA wouldn't work. At that point, if finances prohibited you from buying the house you wanted, you could have found a beautiful resale and avoided all of this. Put the blame where it belongs..on the lender you chose. Sorry if this sounded harsh but I get tired of everyone enjoying all this place has to offer and then complaining about how greedy and horrible the developers are.

Trish- Let me first ask when were you last selling? Because I sold a many of homes myself in Virginia using FHA. I was in-fact a multi-million dollar producer in my area. I am no "Virgin" to this situation.

"However, if you are referring to the 203k loan, there is no such thing as an FHA approved contractor because HUD/FHA does not approve, endorse, educate or certify construction contractors for the 203k loan. Instead, the borrower is allowed to hire any contractor they want for the 203k loan but it is the responsibility of the lender making the loan to "approve" the contractor by verifying the contractor's credentials, work experience, licensing information, type of work performed, experience, and client references. But since lenders do not have an education system for contractors for the 203k and most do not have sufficient infrastructure to properly "approve" contractors for the 203k loan, lenders can direct these contractors to Certified 203k Contractors | 203k Contractor Directory for FHA 203k loans (http://203kContractors.com) to become educated on the 203k. These Certified 203k Contractors will enable the lender to be in compliance with HUD's Mortgagee Letters 98-11 and 00-25."

My lender- requested 4 forms filled out. The request did NOT under any area in the forms request a builder FHA #, it was NOT required for my loan. Only certifications- that normal construction gives, soil perk, plumbing, etc, one year warranty. The Villages IS APPROVED to sell me this house by the way- they CHOOSE not to accept my funding. :swear::swear:

If you read back- you will know that MY REALTOR knew that I was going FHA and NEVER told me until last Wednesday! He should have STOPPED this deal in the tracks after we learned FHA cap amount for Sumter County is so low.

I am upset with The Villages- regardless of who they represent- I am THEIR CUSTOMER. I certainly expect them to take blame for THEIR REPRESENTATIVE failure to disclose. I was told this has happened before. Which means to me --this is a continuing problem. Educate the realtor-who has been selling for The Villages for greater than 7 years- he sold me my Villa. They have NEVER accepted FHA for new construction--so why not disclose that in the contract? Hmm- maybe steering? Think about it?? Why not, if I am not ALLOWED to obtain financing FHA why not disclose that? I am able to get both loans- difference is-had that been disclosed, I would be sitting with 55,000 in more in my account and I would have just chosen another house.

Homeless as of today- matter of fact! Still do to close Tuesday--no help from the Villages!:swear::swear::swear::swear::swear:

[jflynn1]

Entered into contract for purchase. Paid deposit. Paid appraisal. Set to close 3/12. Realtor calls Wednesday and informs me-he didn't know I was going FHA and I can't use FHA. Their suggestion: obtain other lending or pick another house.
Doesn't seem fair- or legal---they didn't disclose that I could not use certain financing when I entered into the contract. I am set to close, I am ready--and they say they won't take FHA so the closing won't happen unless I obtain other financing- which cash to close increased 15,000 and I might have to have a second appraisal-450.00....
I was suppose to get a "builders discount" House 338,995 with builder discount 328,995. Appraisal came back at 330,000 :cus: Welcome to the Villages , and the bubble. It doesn't get any better. Thier way or no way.

[graciegirl]

Welcome to the Villages , and the bubble. It doesn't get any better. Thier way or no way.

It is a choice and I believe a privilege to live here. It is NOT a right.

This kind of a problem must not happen too often. I haven't seen it on THIS forum anyway.

The developers do business differently, but who can say it is wrong. Look around you.

I don't know the developer, don't work for anyone and I do not want ANY MORE NASTY PMs.

I just absolutely LOVE it here. I say that from my heart. I would never have dreamed that at the age of 73 I would be so happy and so involved and so enjoying this new adventure.

I don't think there is a micro chip in my neck.

[Trish Crocker]

First of all...I am still licensed in the state of Michigan and completed the pre-license class for the state of Florida. You appear to be very knowledgeable. Why didn't you confirm that you could use FHA? Again, I'm sorry that this happened to you but since you are definitely not a virgin I don't understand how this occured. If nothing else, why didn't your lender confirm the maximum allowances? Didn't you question the fact that they purchase agreement you signed didn't ask about financing, especially since you know there are additional fees in a FHA mortgage that the seller needs to be aware of. Did you think everything was included or waived. I don't want to get into a debate with you here but I would love to buy you a glass of wine and discuss all of this.

By the way, not sure about the 'steering' reference. That's a HUGE accusation.


Trish

[TraceyMooreRN]

First of all...I am still licensed in the state of Michigan and completed the pre-license class for the state of Florida. You appear to be very knowledgeable. Why didn't you confirm that you could use FHA? Again, I'm sorry that this happened to you but since you are definitely not a virgin I don't understand how this occured. If nothing else, why didn't your lender confirm the maximum allowances? Didn't you question the fact that they purchase agreement you signed didn't ask about financing, especially since you know there are additional fees in a FHA mortgage that the seller needs to be aware of. Did you think everything was included or waived. I don't want to get into a debate with you here but I would love to buy you a glass of wine and discuss all of this.

By the way, not sure about the 'steering' reference. That's a HUGE accusation.

Trish

By the way, not sure about the 'steering' reference. That's a HUGE accusation.

The realtor knew up front we were going FHA, I guess that is what you missed. So-I thought that was confirmation. It didn't disclose I could not go FHA.

Steering is what it is and it is just what I meant. I went through the process and understand it fully. :pray:

I might take you up on that glass of wine one day--as soon as I unpack in that new home :crap2:

[TraceyMooreRN]

By the way, not sure about the 'steering' reference. That's a HUGE accusation.

The realtor knew up front we were going FHA, I guess that is what you missed. So-I thought that was confirmation. It didn't disclose I could not go FHA.

Steering is what it is and it is just what I meant. I went through the process and understand it fully. :pray:

I might take you up on that glass of wine one day--as soon as I unpack in that new home :crap2:

Ohh-one more thing Trish--If you decide to go to work for TV, PLEASE PLEASE PLEASE disclose new homes can't close FHA/VA :eclipsee_gold_cup:

[graciegirl]

Ohh-one more thing Trish--If you decide to go to work for TV, PLEASE PLEASE PLEASE disclose new homes can't close FHA/VA :eclipsee_gold_cup:




I know Trish and she is an intelligent,educated, ethical and sincere person who could get a job in any number of fields if she wanted one.

[Trish Crocker]

By the way, not sure about the 'steering' reference. That's a HUGE accusation.

The realtor knew up front we were going FHA, I guess that is what you missed. So-I thought that was confirmation. It didn't disclose I could not go FHA.

Steering is what it is and it is just what I meant. I went through the process and understand it fully. :pray:

I might take you up on that glass of wine one day--as soon as I unpack in that new home :crap2:

Good luck on tyhe unpacking..I'm almost done..if I see one more cardboard box I'll scream. BTW..considered working for TV (and trust me...anyone I worked with would be completely informed). I changed my mind when I got my first SS check and decided I kinda like this retirement stuff! Wines on me..anytime. What village are you in?

[DougB]

So anyway, welcome to The Villages Tracey!

[KeepingItReal]

[QUOTE=graciegirl;637623]It is a choice and I believe a privilege to live here. It is NOT a right.

This kind of a problem must not happen too often. I haven't seen it on THIS forum anyway.

The developers do business differently, but who can say it is wrong. Look around you.

I don't know the developer, don't work for anyone and I do not want ANY MORE NASTY PMs.


First there have been many posts stating that they were having major problems trying to use anyone other than the Villages Mortgage service...due to time constraints even though they could get a better interest rate elsewhere, maybe this is done intentionally???

Until you have personally dealt with the Villages on one of these type problems you really have no idea and no experience on which to base an opinion as to what it is like to try and resolve an issue with them. You will quickly see they are not what you may think. Nothing happens on anything without a fee from you but it doesn't work for you that way. They control every move and set their demands without any concern for you as happened exactly in this case.

Amazes me how people still want defend the business against an individual even after the problem has been explained so well as it was here. I have documentation to prove I was overcharged on the bond interest and had to fight for months to have it corrected and was also overcharged on the county taxes over 300% and still the cheerleaders cannot accept it. Yes it is a good business and it has grown into a great place as they go but the residents paid for it all and then some so it is not from the goodness of anyone's heart that it happened.

If you have the price of a ticket YOU DO HAVE THE RIGHT to ride this bus ,anyone does, it's called fair housing, and they have the right to be treated respectfully and fairly.

Try moving here without the money to pay every charge and fee they levy and see how far you get..IN THE END IT'S ALL ABOUT THE $$ you are paying.

[graciegirl]

[QUOTE=graciegirl;637623]It is a choice and I believe a privilege to live here. It is NOT a right.

This kind of a problem must not happen too often. I haven't seen it on THIS forum anyway.

The developers do business differently, but who can say it is wrong. Look around you.

I don't know the developer, don't work for anyone and I do not want ANY MORE NASTY PMs.


First there have been many posts stating that they were having major problems trying to use anyone other than the Villages Mortgage service...due to time constraints even though they could get a better interest rate elsewhere, maybe this is done intentionally???

Until you have personally dealt with the Villages on one of these type problems you really have no idea and no experience on which to base an opinion as to what it is like to try and resolve an issue with them. You will quickly see they are not what you may think. Nothing happens on anything without a fee from you but it doesn't work for you that way.

Amazes me how people defend the business against an individual even after the problem has been explained so well.

If you have the price of a ticket YOU DO HAVE THE RIGHT to ride this bus ,anyone does, and they have the right to be treated respectfully and fairly.

Try moving here without the money to do so and see how far you get..IN THE END IT'S ALL ABOUT THE $$ you are paying.

It is a privilege if you are old enough. This place was planned as an over 55 retirement community. It is a right if you can afford it. But there are opportunities for people to move here with a huge spectrum of prices from about 70k to a million and a half.

My intent was to explain that if you have lived your life in such a way that you have saved and sacrificed and planned as most of us have and can afford to move here and live here or to move to any place that you have planned for, than you have earned the privilege to do so. If you have not, it isn't a choice available to you, just because you want to. Retiring to a new place is a privilege given to those who have planned for it.

I could be wrong, but it seems to me that if these sales reps were trying to pull the wool over peoples eyes by neglecting to tell them about the forms of financing accepted, then it would be posted on this forum. People come on here with all kinds of complaints. By the way I ran into our sales rep and asked him if there were sales reps who were pushy and pressured and he said Yes, a couple of them. I truly never dreamed that happened at all. I thought ALL of them were very no pressure because that is what the company wanted.So, I am wrong...frequently, but I try to set things right and to quell rumors. I hate for people to get away telling fibs.

It appears that you feel that the bond overpayment that you experienced was intentional. I don't know if anyone will ever know.Perhaps it was. It would be a very dumb thing to do.

It seems that they are making enough money legitimatly not to resort to fraud .

But although I am a positive person, I am not a stupid person. It just seems that they do so many things right.

I try as hard as I can to get to the bottom of things. I love living here and wish any retired person would have the same chance at this kind of enjoyable life as we are experiencing.

[KeepingItReal]

[quote=KeepingItReal;637709]

It is a privilege if you are old enough. This place was planned as an over 55 retirement community. It is a right if you can afford it. But there are opportunities for people to move here with a huge spectrum of prices from about 70k to a million and a half.

My intent was to explain that if you have lived your life in such a way that you have saved and sacrificed and planned as most of us have and can afford to move here and live here or to move to any place that you have planned for, than you have earned the privilege to do so. If you have not, it isn't a choice available to you, just because you want to. Retiring to a new place is a privilege given to those who have planned for it.

I could be wrong, but it seems to me that if these sales reps were trying to pull the wool over peoples eyes by neglecting to tell them about the forms of financing accepted, then it would be posted on this forum. People come on here with all kinds of complaints. By the way I ran into our sales rep and asked him if there were sales reps who were pushy and pressured and he said Yes, a couple of them. I truly never dreamed that happened at all. I thought ALL of them were very no pressure because that is what the company wanted.So, I am wrong...frequently, but I try to set things right and to quell rumors. I hate for people to get away telling fibs.

It appears that you feel that the bond overpayment that you experienced was intentional. I don't know if anyone will ever know.Perhaps it was. It would be a very dumb thing to do.

It seems that they are making enough money legitimatly not to resort to fraud .

But although I am a positive person, I am not a stupid person. It just seems that they do so many things right.

I try as hard as I can to get to the bottom of things. I love living here and wish any retired person would have the same chance at this kind of enjoyable life as we are experiencing.

Gracie I definitely respect your thoughts and intentions and do feel you always mean the very best. As noted this is a great place but as with anywhere or anyone it's not perfect. We all should be able to still be objective about a problem, address it and move on but not just go on blind faith that the Villages can do no wrong.

I do not know if the bond overcharge was intentional for sure, I do know it had been happening for many years and affected about 880 people to the tune of around $600K or more. I do know it took a lot of doing before anyone with the Villages would listen to the facts and no one from the VCDD would ever listen and even had their lawyer contact me saying I was wrong. I do know Gary Moyer VP of development immediately told me I was right and now they are having to refund the overcharges to 880+ people. Gary has worked with bonds for 30+ years. I do wonder where that extra $600K was being kept as it was over and above what it took to pay the bonds so why did they not wonder why they were accumulating excess money in the bond fund or on the ledger? Would they have ever corrected this on their own I am pretty sure they would not have. Doesn't mean there isn't still a lot of right things here but we need to know the ins and outs if we are paying for them. Doesn't mean this is still not probably the best retirement area in the world with which I agree.....

[TraceyMooreRN]

As I do respect all the posts and replies--it happened to me--THE FHA NIGHTMARE and it has happened to others as well. I have found out first hand, others learned during the signing of the contract.

Pushy realtors? Really is anyone surprised?

Saved money and planned to live here? Well- the Cat is out of the bag. I came here in 2007 to visit my mom and bought my first rental home. Moved here fulltime in June 2012 at the age of 38!! I am a fulltime 20% under age 55 living right here- participating in all the activites that I pay for daily/weekly/monthly. I have been snubbed by the "55 or older" only community representatives--but I am here to tell you-IT IS THE LAW to allow me the "choice" to live here.
:police: Before anyone starts huffing and puffing about me being a "youngin". I am too young for the BABY BOOMERS club and I would certainly love to be in it! If you had the "choice" to move here when you were 38, why the heck wouldn't you??? Before anyone jumps in--nope no kids here. They live fulltime in Virginia in COLLEGE and will not be joining me in my new home, not even for the summers. They both have homes in Virginia, I will not be sneaking any of my kids in the sports pool, I will not be skinny dipping (where I am not supposed to be), I do not have loud parties--I'm a Villager--I am usually leaving town square at 9pm and in bed by 10pm:wave:

[gomoho]

Wow - you are 38/39 and have kids in college with their own homes???

[2BNTV]

Afetr reading all the posts on this thread,I would have to say this was a mistake on the part of the lender and partly on the realtor with not being savvy enough to know this type of lending was not allowed. I live in a condo complex that doesn't approve of FHA loans so one buyer was rejected much to my dismay so I can see Tracy's point of view in that I would have been p***ed off if this happened to me.

As far the other post, No one or nothing in life is perfect. To demand that it is, sets someone up to be sick. We should never be naive but never be totally cynical. I think that looking at all the positives of living in TV would make one grateful to be able to enjoy a great lifestyles. Just like driving a car is a privledge, not a right to be taken lightly.

I personally can't wait to get to TV and avoid the snowfall due today. Where is a transporter when you need one. :smiley:

[obxgal]

It's not like VA loans have not been discussed many times on these boards.

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/veterans-jump-here-va-loans-54471/
https://www.talkofthevillages.com/forums/villages-florida-new-members-forum-115/no-v-loans-52559/
https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/re-va-loans-46077/
https://www.talkofthevillages.com/forums/villages-florida-new-members-forum-115/va-loan-certificate-process-32079/

[GaryW]

As I do respect all the posts and replies--it happened to me--THE FHA NIGHTMARE and it has happened to others as well. I have found out first hand, others learned during the signing of the contract.

Pushy realtors? Really is anyone surprised?

Saved money and planned to live here? Well- the Cat is out of the bag. I came here in 2007 to visit my mom and bought my first rental home. Moved here fulltime in June 2012 at the age of 38!! I am a fulltime 20% under age 55 living right here- participating in all the activites that I pay for daily/weekly/monthly. I have been snubbed by the "55 or older" only community representatives--but I am here to tell you-IT IS THE LAW to allow me the "choice" to live here.
:police: Before anyone starts huffing and puffing about me being a "youngin". I am too young for the BABY BOOMERS club and I would certainly love to be in it! If you had the "choice" to move here when you were 38, why the heck wouldn't you??? Before anyone jumps in--nope no kids here. They live fulltime in Virginia in COLLEGE and will not be joining me in my new home, not even for the summers. They both have homes in Virginia, I will not be sneaking any of my kids in the sports pool, I will not be skinny dipping (where I am not supposed to be), I do not have loud parties--I'm a Villager--I am usually leaving town square at 9pm and in bed by 10pm:wave:

Respectfully put..... No one should worry about you living in "TV"
Hey Look Here Jack,, They sold you the house, so it is of no concern to anyone else that you live here....

But the Skinny Dipping thing is another story.. :22yikes:

[Cantwaittoarrive]

As I do respect all the posts and replies--it happened to me--THE FHA NIGHTMARE and it has happened to others as well. I have found out first hand, others learned during the signing of the contract.

Pushy realtors? Really is anyone surprised?

Saved money and planned to live here? Well- the Cat is out of the bag. I came here in 2007 to visit my mom and bought my first rental home. Moved here fulltime in June 2012 at the age of 38!! I am a fulltime 20% under age 55 living right here- participating in all the activites that I pay for daily/weekly/monthly. I have been snubbed by the "55 or older" only community representatives--but I am here to tell you-IT IS THE LAW to allow me the "choice" to live here.
:police: Before anyone starts huffing and puffing about me being a "youngin". I am too young for the BABY BOOMERS club and I would certainly love to be in it! If you had the "choice" to move here when you were 38, why the heck wouldn't you??? Before anyone jumps in--nope no kids here. They live fulltime in Virginia in COLLEGE and will not be joining me in my new home, not even for the summers. They both have homes in Virginia, I will not be sneaking any of my kids in the sports pool, I will not be skinny dipping (where I am not supposed to be), I do not have loud parties--I'm a Villager--I am usually leaving town square at 9pm and in bed by 10pm:wave:

Heck why not sneak the kids in the sports pool, skinny dip (where you're not suppose to be) have loud parties?? Sounds like fun and before the baby boomers got old many would have (probably still would, I and my wife would) join you!

[TraceyMooreRN]

Wow - you are 38/39 and have kids in college with their own homes???

Yes- 39 now- will be the BIG 40 in Sept, yes--I have a 19 year old in college and a 21 year old stepson....they have a home in Virginia :smiley:

[skyc6]

Welcome to the Villages, however old you are! Considering we are fast approaching 92, 000+ people. the complaints are very few and far between. There will always be some isolated cases, but as I have read this entire thread, I feel most of the fault lies with the agent who did a poor job for their client. Information that was needed was not provided. I think most of our agents did a superb job, or we would be hearing about it.
The developer is running a family business, the main goal of which is to make money selling a fair product. If not, they quickly go out of business. In any business, there will always be the occasional problem. Possibly more of these problems occur in the 20% who are not of retirement age with savings to spend, and who need creative financing. I don't know for sure, but I do know this is a unique situation and it bears paying attention to. I don't think it is the developers fault that it occured...I think it is the agent and the lender, who are supposed to be helping the buyer, and clearly did not do an adequate job. I love this place, and I also think there are many 55+ developments that are not nearly as well maintained, and do not have nearly as many amenities for their people to enjoy. That's a big part of the reason they are selling as many homes each month as they are, and also why TraceyMooreRN decided to buy here. There are undoubtedly other places that would be happy with FHA loans. It is important to research where you want to live and why and hope you don't get poor information or no information from those whose job it is to help you.

[TraceyMooreRN]

Okay Ladies and Gents--I'm DONE---CLOSED 03-13-2013 in Village of Gilchrist (newest section) with what began as an approved FHA new construction loan with 25,000 down--turned out to actually be 75,000 down and conventional due to all the mistakes in this transaction.

BE WARNED--IF YOU ARE GOING TO OBTAIN FHA/VA FINANCING--YOU WILL NOT CLOSE ON A NEW PROPERTY IN THE VILLAGES!!! :spoken:

The builder was WONDERFUL for the walk-thru....answered all my questions and I was actually rushing him so I could go get those keys!!! This has been the most stressful 4 weeks of my life!!:bowdown:

:2excited:Now back to packing and enjoying my life as a 20% resident under the age of 55--see you at the sport pools, golf course, country clubs, square and riding to work in my golf cart! Hubby and I survived!

[njbchbum]

congrats tracey and hubby! glad ya survived! better days are in front of ya now! and the days behind ya are a lesson for all.