First of all, it`s always a good idea to confirm the exact type of road classification with your local service for roads and bridges. Just because it`s an unpaved road doesn`t mean it`s also considered private. Many counties have different classifications of route types and it is always best to make and check the call. Another, and I sometimes feel like mortgage professionals don`t do it enough, is to take responsibility for the transaction and recognize the fact that you`re a composer! Thanks to the Consumer Financial Protection Bureau (CFPB), the process of buying home loans is now very similar to a symphony. I mean, it was always a process that needed coordination, but now more than ever, it takes a “composer” to take that baton and guide a group of individuals in creating an exciting and special work of art – helping a veteran make the American dream of property a reality! Nothing makes my day like a diploma, but taking out a home loan for a veteran has a special place in my heart, I hope he will do it for you too! How to avoid this nightmare scenario? Well, the only way to be absolutely critical in a post-TRID environment is through communication! As a lender, you must make this call to the listing agent who comes forward, explains that it is a VA financing and highlights any specific needs that could arise with the VA loan. Educate these officers about private road requirements, pest inspections, water tests, minimum property requirements, and anything else that can help your veteran close their home. The road is long, especially among listing agents, petrized by VA mortgages. Who knows, maybe they`d create a new referral partner for you! It happened to me more than once. What a feeling, isn`t it? You have done a great job on this “difficult” VA home loan that the listing agent is starting to refer customers to you because you have facilitated a “hard” loan! “The mortgage borrower must confirm that the property has safe pedestrian access and adequate access to a vehicle from a public or private road. Roads must be either dedicated to public use and maintenance or preserved as private roads protected by permanent registered easements. Private roads, including common entrances, must be protected by easements, permanently registered shares of ownership or be in possession and maintain an HOA. Common entrances do not require a common maintenance contract. Public housing agencies that offer accounting assistance or subsidies usually follow the first mortgage guidelines. If you are using a first FHA mortgage with DPA, priority should be given to FHA road maintenance policies.
If you have any credit scenarios or questions, please email me so I can check them out and answer them – and this may even be the next highlighted credit scenario of the week! Private street. A hidden killer! Well, I hope everyone had a wonderful Thanksgiving, enjoyed the time spent with family and friends and took some time to get back on track of this crazy business! I`m sorry I wasn`t able to finish my article on time last month, but I only had a calendar that wouldn`t give me a second to take a break! But it gave me the opportunity to reflect on a big topic for this month`s article, and it`s something I personally encountered not so long ago in one of my transactions goes. I like to classify them as one of the silent killers of VA loans: the dreaded private street maintenance contract! USDA accurately reflects FTA requirements. USDA Guaranteed Loans require that private roads be protected by a permanent registered easement or that the road be maintained by a HOA.. . . .