HOA doesn't permit VA financing?

[timd354]

I do
I doubt that is the case...more likely the loan was declined for some other reason and the veteran misunderstood what he was being told by the lender. Additionally, there is no way that an HOA could enforce such a restriction and would get sued silly if they attempted to do so.

 

[Howard Klahr]

the HOA does not permit VA financing

Assuming it is true, the prohibition would have to be stated in the governing documents. Therefore, if necessary to address the issue, the buyer would have been provided with the governing documents as part of the purchase process and would have possession of the "rule".

 

[JTip]

I'm thinking it more likely the coworker just didn't qualify to buy the house and is trying to save face.

Agreed. Little do they know about you and the crack team of Real Estate Myth Busters at the AF.

You should call the local news, gather a lynch mob, rally for the troops who just want a roof to live under using their VA loan benefits and wait for the 'boy who cried wolf' to come out. "Sorry folks, my credit score is 540...."

 

[nicholz12]

Something is missing, doesn't sound right. It sounds like don't meet VA qualifications. I have appraised single family homes with an association fee with no problems.

 

[Mr Rex]

Perhaps the homeowner/seller would not accept the seller using VA financing because they were not willing to make any repairs.

 

[1963Clipper]

"Perhaps it was the other way around. The VA did not like the owner occupancy ratio of the development."

Guess it could be, IF the VA had an owner occupancy requirement for developments...

 

[J Grant]

FHA does not approve of certain PUD projects or condos...I am not VA list so dont' know if VA has similar.

That said, if an HOA of private homeowners ... I have no idea if they as a group are allowed to dictate what loan programs owners can sell to as far as buyer...the seller may just not want to deal with more stringent VA loan process in a hot market if they are getting other offers...who knows hard to tell what is the truth

 

[Ken B]

Perhaps the homeowner/seller would not accept the seller using VA financing because they were not willing to make any repairs.

I'm personally leaning towards this. Apparently, the property did have some issues. Based on some other comments my wife made, I'm thinking the buyer doesn't understand much about the process. Thanks to all who commented.

 

[Mr Rex]

I just went through something similar that makes me think this may be the case. I recently did a home inspection of a small house that looked clean as a pin from a typical buyer and sellers outlook. The house had some fairly significant moisture issues under the house as well as dezincification of the brass fittings on the pex water lines (the latest class action suit de jour) and various other small items. The borrower was getting a USDA direct loan which requires a Home Inspection and everything in the Summary to be repaired. The seller happened to be an attorney and was in a real snit to find she and hubby were going to have to come out of pocket for repairs just to get out of the house or put it back on the market. After over 6 months on the market etc. they fixed it and kept the bird in the hand.

 

[GA Benny]

Here is a condition on the NOV:
3. LIEN-SUPPORTED ASSESSMENT. This property is located in a development with a mandatory membership in a homeowner's association. The lender is responsible for ensuring that title meets VA requirements for such property and that the homeowner association assessments are subordinate to the VA-guaranteed mortgage.

If the HOA is not willing to make its assessments subordinate to the loan, it may need to be declined.