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Well I tried asking my agent if there were any routes around this, and he said that it's a little more difficult because its not that I, personally, need the flood insurance, but the lender requires that the HOA have at least 6 months on their policy. The HOA currently has a flood insurance policy that expires next month.
Honestly, I haven't talked to the LO myself, just been going through my agent, to ask the LO. Should I try to contact the LO myself?
Hi, I've been following this discussion since it started, mainly out of curiosity of how all this works. One question that comes to mind is "Why does the lender require the HOA to have the insurance?" It seems like that would be a safe way to protect vacant properties, but is that really a problem? Maybe, it would be possible to get another type of loan where you can simply have the current owner's policy transferred to you. Or, would there be too much lost money for whatever has been paid for the FHA loan to this point?
As an aside, I put my house on the market last November ('09). The son of an acquaintance put their house on the market around the same time. My buyer's had a conventional loan. Their buyers had an FHA loan. We closed within four weeks. The other buyers were still "jumping through hoops" when we were packing to move. Last I heard, the Buyers, their children and pets were living in a hotel and expected to be there for about four more weeks while the FHA process was being hung up on every turn. It was a mess.
I hope this gets sorted out for you somehow. All the best.
Hi, I've been following this discussion since it started, mainly out of curiosity of how all this works. One question that comes to mind is "Why does the lender require the HOA to have the insurance?" It seems like that would be a safe way to protect vacant properties, but is that really a problem? Maybe, it would be possible to get another type of loan where you can simply have the current owner's policy transferred to you. Or, would there be too much lost money for whatever has been paid for the FHA loan to this point?
As an aside, I put my house on the market last November ('09). The son of an acquaintance put their house on the market around the same time. My buyer's had a conventional loan. Their buyers had an FHA loan. We closed within four weeks. The other buyers were still "jumping through hoops" when we were packing to move. Last I heard, the Buyers, their children and pets were living in a hotel and expected to be there for about four more weeks while the FHA process was being hung up on every turn. It was a mess.
I hope this gets sorted out for you somehow. All the best.
I see what you're saying, but FHA is really the only option we have. The 3.5% down payment is the number 1 reason. We're not getting any closing help, and we have no furniture. So coming up with more $ on the down payment isn't really an option.
We're waiting on the NFIP to close on the sale of our home. Let's hope the President can sign this today.
I don't understand why the extension runs only through September 30 when hurricane season ends on November 30. I know the NFIP isn't just for hurricane damage and that the bill came from a California legislator (where hurricanes are irrelevant) but you'd think someone would've thought about that.
We're waiting on the NFIP to close on the sale of our home. Let's hope the President can sign this today.
I don't understand why the extension runs only through September 30 when hurricane season ends on November 30. I know the NFIP isn't just for hurricane damage and that the bill came from a California legislator (where hurricanes are irrelevant) but you'd think someone would've thought about that.
To my understanding, the program has extended until Sept. 30, meaning that home owners and businesses have until then to purchase a policy. Policies are meant to protect for extended periods of time. For example, 1 year, 2 years, etc
I don't understand why the extension runs only through September 30 when hurricane season ends on November 30.
"They" want to do a complete overhaul of the NFIP, but never get around to it. So they keep doing these short-term extensions to give them time to actually change it instead of just re-upping for say "5 years". So keep an eye out for all of the posts at the beginning of October saying "I can't close b/c my buyers can't get flood insurance...."
Since the renewal of this program (and the FTHB tax credit! woohoo!) I have yet to close. Why? Now, the Home Owners Association is lagging on renewing their flood insurance policy. Technically, the current flood policy doesn't expire for another week and a half. I wouldn't be surprised if they wait until the last minute to renew their policy
So now, we continue to wait. 110+ days in escrow... and counting
I finally closed today. 134 days in escrow, REGULAR SALE (not to mention the 4 months of looking, bidding, and getting out bid prior to getting into contract with this place). Good grief, eh?
A couple of good things did come out of this though. All this time that we would have been paying a mortgage, had I close earlier, we've been saving and helping us with our move-in fund. AND, instead of being locked in at 5.0% we were re-locked into 4.75%
I'm just happy we closed. It's been a long road.
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Finally!
