Mortgage / New Home
 

Is it legal for the villages to refuse finalizing the closing of a new home based on an FHA mortgage? Especially when this this was never disclosed prior and we are 2 weeks from the date with everything packed and ready to go!

Looks like they can

Warning
Most prospective buyers with FHA-insured mortgages check whether sellers will accept such financing beforehand. Homes listed in the Multiple Listing Service will also always note whether the seller is willing to consider such offers. In addition, owners selling their homes are free to choose just what sort of offers based on mortgage financing they will accept.

Considerations
There's no law that can compel a seller to accept FHA financing, though sellers artificially limit their buyer pool by doing so. Buyers, though, can help their cause by agreeing to an "as is" appraisal, for one. They might also consider asking for less in seller contributions to help with closing costs. Currently, they're limited to 3 percent of the sale price. It also helps when sellers understand that the FHA has noticeably streamlined the paperwork process.

There is probably something missing here, it is not likely that you would be notified 2 weeks before closing that the loan is not accepted. Wouldn't this have been disclosed on the contract? I'm pretty sure they only accept conventional loans and there is a short period of time to close on new homes but they would not have waited until 2 weeks prior to closing it would have been disclosed when the contract was signed.

You are correct , something is missing in that post and speaking for myself I would never in any of my homes sales accept an FHA buyer , but that’s just me .

No, nothing missing at all. Brand new villages home, been searching with our salesperson for many months for just the right one. Not a mention in the contract or from the salesperson until the final closing documents are being prepared. This is NOT ok.

To my knowledge The Villages has never sold even a single new home FHA financed as it is costly and time consuming to do so for a builder. TV homes sell like hotcakes and there is no need for the developer to go through the hassle of meeting FHA requirements. Resale houses in TV seem to qualify if the seller is willing.

We built 2 years ago and we were informed verbally and in writing that VA/FHA we’re not acceptable for closing on a new home. If you were not informed verbally and in writing that is on your sales agent. How did your sales agent respond when you confronted them with the issue?

Yes, it is legal. No, they don’t have to accept an FHA

We just closed 6 weeks ago in TV and the contract stated that we had 30 days to close or we would be subject to high per day financial penalties. We were advised that the Villages does not accept anything except conventional financing because there is no way an FHA or VA loan can close in 30 days and TV will not make any accommodations for any requirements that FHA and VA loans require. What does your signed contract state regarding financing?

If you can close an FHA loan within 30 days, without any requirements put on TV, then I would doubt TV would care. Were you able to get an FHA loan with a guaranteed 30 day closing and waiving the home inspection, etc.? We just closed on our previous home last week and it was an ordeal for the buyer to get their conventional loan closed in 45 days due to everyone in the chain being backed up.

So you're saying no one asked you how you were going to pay for the new home when you signed the purchase agreement? I'll bet you that if you look at all your documents that it's there in black and white. Not saying it's the right thing for them to do but I still would bet that it's in there somewhere.

The quick closing schedule is designed to be favorable to the Citizen's first mortgage company, which will accommodate the requirements of the developer's quick close process. Cash is even better, but the developer knows the typical mortgage processes and wants to make money from all his businesses. . .

So, fair warning, Citizens First is the developer prefered mortgage lender, cause he owns it, and the bank can perform to the developer's requirements.

just bend over a bit :boom:

I would say yes. Why not ask an attorney?

Golf cart garage
 

Golf cart garage. Has anyone added a golf cart garage to their home? We only have a one car garage but a very wide driveway. Hoping we have enough room to meet requirements from Community Standards. In planning stages. Cost? Worth it? Has anyone done this and if so, the experience. Can you recommend contractor?

FHA and The Villages response
 

The Villages cannot close any new home sales with an FHA mortgage. I was told that it has to do with not getting a certificate of occupancy prior to the closing date. So, it is not The Villages refusing an FHA mortgage, it is that the way they do things does not meet the FHA regulations.

Suggest you start a new post this thread is about FHA financing.