Home Buying in Tucson>Question Details

Unsure, Home Buyer in Tucson, AZ

I will be doing an FHA loan to purchase a home. The problem is that the house is on a very bumpy dirt road

Asked by Unsure, Tucson, AZ Fri May 30, 2008

with a big sign that says it is not a county maintained road. Someone told me that it will not pass the FHA appraisal becuase it is not a paved road. Does anyone know what the rules are?

Help the community by answering this question:


There is nothing in the FHA requirements that state a property must be on a paved road to be approved for FHA financing. I would recommend you not use that particular "someone", who told you that, for any real estate advice.
1 vote Thank Flag Link Sat May 31, 2008
When I bought my rural on a privately maintained road in 2007, my lender did not require a road maintenance agreement.

Had I known the banks would require this document, I would not have touched this kind of property.

I finanally sold the home after over a year on the market and it was a nightmare. Unfortunately all, yes, all of the white trash neighbors refused to take responsibility for mainting the road (which had become a disaster) and thus refused to sign the a road maintenance agreement despite several attempts by my realtor. And yes we used the "you won't be able to sell your home either when the time comes" argument. As a result, I lost 3 potential offers and it took me a over a year to find a buyer whose lender did not require an agreement. My advise to anyone considering such a property, is don't do it if you ever wish to sell.
0 votes Thank Flag Link Mon Nov 11, 2013
One call to a lender will clarify the situation. It is most unlikerly that ANY lender will loan on a property on a not mainteind road (bumpy or flat). If there is a "road maintenace agreement"' this may be OK. If there is no agreement, one could be developed if owners of other properties would cooperate. Your argument to them would be that without such agreement in plce they would have hard time sellig their properties.
Unless you are already working with an agent, contact me and we can see what can be done.
George, Broker, Tucson Home Advisor LLC GeoSzk@WBhsi.net
Visit http://www.DestinationTucson.Net and http://www.LuxuryTucsonRealestate.NET
PS because of this situation you should be able to get a good price.
0 votes Thank Flag Link Wed Jun 11, 2008
As Holly mentioned, a quick call to your lender should clear up any questions you have about being able to obtain an FHA loan for that property.
0 votes Thank Flag Link Sat May 31, 2008
Most likely, you will only need to provide evidence of a road maintenance agreement between the residents on the road, if it is a private road. If it is a county or city maintained road, you should not have any issues, even if it is a dirt road. But have your lender double check with the FHA appraiser or underwriter first, just to be sure.Sometimes road maintenance agreements can be difficult to obtain if they are not in place already. Good Luck!
0 votes Thank Flag Link Fri May 30, 2008
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