Everyone wants thier "friend" to be part of YOUR homebuying agents of necessity.
Here's more info. The property was not FHA approved because the association, or community, in which this townhome is located, decided to not continue to be FHA.
They did used to be FHA loan approved, the whole community, but they decided to "unsubscribe" i guess you could say and now we couldn't even get the spot approval.
My loan office is incredibly helpful and he has been more than supportive with anything, so when he called me to tell me that the property won't be approved for FHA loan, he also asked me why were we shown a non-Fha home to begin with? if that's not what we had asked for?
The answer is probably because the realtor didn't find this out, until we did. it came to surprise to him to, when in reality, in my opinon, it shouldn't. the realtor should have known prior to showing it to us. My lender tells me we're all set for a mortgage, it's not us why we didnt' get it, it's the property.
That's all i got from my conversation with my loan office, i haven't talked to my realtor yet. but i'm pretty sure he'll have a hard time accepting the honest mistake that's costing me money.
There are a couple reasons why a home might not be FHA-approved. First and foremost is property condition. FHA has minimum property requirements which must be met - mostly health and safety related. It's the appraiser's job to identify these hazards and, if necessary, require that they be remedied. For this reason sometimes "fixer uppers" are not good candidates for FHA financing. Not your realtor's fault in my opinion.
Another reason it might not be FHA approved is if it is a condo. FHA has pretty strict requirements when it comes to lending on condos. However a quick search of HUD's website can tell you if a particular condo development is FHA approved. If this is the case your lender should have probably done their homework before ordering an appraisal.
Either way, I'm afraid your money is probably gone. The services were adequately provided and at the end of the day the reason for getting an inspection and appraisal is to keep both you and your lender from making a mistake costing you thousands of dollars. The $700 you spent is a risk of pursuing the property/loan and most likely a sunken cost.
Sorry probably not the answer you want to hear but it's a cost of doing business. I would probably dig a little deeper with your lender to find out why the home was not FHA approved though. It sounds like you maybe don't have a complete understanding of the why behind their decision.
best of luck