Log Cabin Appraisal And FHA Lending Issues

[Terrel L. Shields]

No amount of specificity is sufficient to sway Can when he is convinced that he is right. So FHA, SBA, FmHa, etc. are all "self-funded" and never use any taxpayer money.... But when farmers use crop insurance in his book that is a "farm subsidy"....Crop insurance works exactly like FHA, so? How can you be right on both counts? One costs the government money but the other doesn't ? Dream on.

 

[Elliott]

Didn't we learn anything from Enron? The government seems to get to choose the accounting system that is most favorable to their most bizarre goals. 97% of scientist agree there is global warming, though the last 18 years of objective satellite data doesn't prove it. Appraising is so much simpler.

 

[JTip]

with the help of taxpayers

Sorry. Didn't know that was salt in the wound. At one point in time we did cough up a few bucks towards this program. Cost me a Starbucks or three for all those shenanigans.

As a previous salesperson, I knew what FHA meant. Poor/mediocre credit, most likely a BK over the past 5 years or so, inability to save money that defines 'skin in the game'....... Hey, its a great program and everybody deserves a chance on home ownership. But knowing how the process (pre 4000.1) worked selling, I would advise my seller to continue to market for conventional and/or cash buyers, even taking a discounted offer, to end up with a smooth, hassle free closing.

And getting all the 'bells and whistles' while only putting down 3.5%? If you can't save 20% down then you get cloth seats, manual windows and hubcaps like the general population. You are shopping in the wrong neighborhood with your FHA pre-approval.

I hope Mr. David B. Baker, CG, will update us on his process and hopefully continue to market, finding a strong buyer for his mom's property.

 

[Michigan CG]

FHA will accept log houses as eligible collateral.

No one said they wouldn't but the FHA appraisal requirements sound like a big challenge. If I were selling I would market it as not for FHA or USDA financing.

 

[Terrel L. Shields]

My partner (may she rest in peace) back in the 90s did a geodesic dome. Between us we did about 4 log homes before they broke us of sucking eggs. Not one of those assignments were we not required to find additional comps. If we had 2 log comps, they wanted 3 and a listing. If only 1, then they wanted another and again listings. They would take anything so we had small cabins on the lake used as comps to big log cabins - completely senseless comps that required 40% or more adjustments. Meaningless. Our judgment meant nothing. That's why I would not touch one. Can may act like it is no big deal but I bet if you had a community of log cabins and had 12 log comps then someone would want either more sales or more listings and a lot of extra commentary. etc. No thank you.

And yes, if selling, I would tell them that there would be a penalty clause that if you attempt FHA/secondary market financing, I am going to take your deposit if the deal cannot be done in 30 days...no matter what financing contingency is in it. I've seen these go on for months to get underwritten.