I don’t know if it’s legal or not but I do know the villages does this all the time. They refuse VA loans also on new purchases. They did the same thing to me 10 yrs ago when purchased first home. We were 2 weeks before closing when we were informed and then jumped thru hoops and ended up with Citizen’s bank, closing from out of state. It’s TV’s way of ensuring you use there bank.

I’m still trying to figure what the prison has to do with anything out here in the new section and I’ve been out here 3 years , I’ve had 2 minor issues with my home and were cleaned up immediately, I also had my home inspected by a very good inspector and the bond is disclosed to you when you buy why should it be a surprise and s far as home resales all I’ve seen is higher prices , I’ll be selling in the spring and moving to the lofts and unless there is some outside economic event I expect to do very well because of discount when I first moved in, I’ve used citizens for 5 homes here and never had a problem maybe because I take the time to read everything

Great points. Almost 1 in 10 VA loans become seriously delinquent, and about 16% of FHA loans are more than 1 month past due. Many more are past due but not yet 30 days plus.

Both FHA and VA are particularly picky about the collateral and won't allow the borrowers to pay for repairs or improvements in order to close, only the seller. For example, if there are stairs leading to the front door and no handrail, FHA and VA require the seller to pay for one so the buyer can get a loan.

WIth the delinquency stats, you can see why collateral is paramount.

Not even close to the reason why they refuse VA loans. This assumes they would risk selling the house just to get the loan. Get real.

Conventional loans with 3% down payment are available but be prepared to pay mortgage insurance.

Pay Little to No Down Payment With These Mortgage Lenders

We couldn't use our VA to buy a new home in The Villages either. Please don't tell me how patriotic the Morse family is.

Nowhere in the original signed paperwork does it mention that neither a VHA or FHA loan will be accepted. Also, those words were never conveyed to us over the course of house hunting or proceeding with the new home we chose. Only now has it become a “misunderstanding” two weeks before settlement. Oh, but now we are welcome to look at preowned homes.

Call the lender who approved the FHA for you and tell them to switch to a Conventional 97 Loan. Unless they only do FHA, they should already have everything they would have needed to approve you.

97% Loan to Value Options | Fannie Mae

Of course it is. Who here doesn’t know the villages is a business. Most of use are here because we made good decisions with our money too. It’s not hard to understand.

How do you know there not patriotic
 

are you friends or relatives of them ? I don’t know many businesses, who operate as patriotism first and business second unless your an army / navy store or sell survival products

Im not surprised. The Villages also doesnt do VA loans, although they'll tell you that you can refinance using VA. I think it has to do with the inspections. The villages just doesn't want to be bothered.

Fha has a lot of requirements of the builder which they may not be willing to comply with. Existing properties no problem new construction an issue

I read the responses you got, but really, didn't your Realtor go over financing with you from the start? When I have a client one of the first things before looking at homes is to get what we call here a pre-qualification letter from a lender....I'm just suprised that if the Realtor working with you is working for you and sold often in The Villages she/he would of known what is the best way to complete the sale is. If The Villages doesn't accept FHA or VA loans then get one that works ...and it appears from numerous responses the way to go is Citizens....even now I would reach out. I'd also go over the contract you signed. If there are to be extra dollars paid for delays you need to know that Best of luck!

I recently refinanced my Villages home mortgage with Citizens First. one month after closing I received a letter stating that Citizens First has transferred my mortgage to FHA. So, they do this now as a standard practice.

No, they don't. FHA does not service loans. Your loan was likely sold to Fannie Mae with Citizens retaining the servicing. That's how the business works in general. Most lenders transfer the asset and keep the servicing . Read your letter again.