Just when I thought I had heard it all I was schooled again by an out of town lender. Buyers were attempting to purchase a home using FHA financing. Credit scores were fine so appraisal was ordered. Appraisal came back with a couple repairs but nothing serious. Buyers actually did repairs and appraiser came back out. House and property look good for FHA now. Set a closing? Nope. Loan denied. Apparently even with good credit and appraisal coming in fine this lender had another road block up his sleeve. He called it merging commercial. I had never heard of it before but lender says if the subject property is on a four lane road or street it is considered "merging commercial" and not something they are willing to loan on. It is zoned Residential, no plans by the City of ever changing that, the buyers qualify, the appraisals is good but the lender feels FHA might not want to buy it so they are passing on the loan. The word "might" really threw me. They weren't denied, they won't even present it to FHA. Lender says if FHA won't buy on it they would be forced to sit on it and they don't keep any loans in house. Everything is sold. So....they refuse to try in case FHA won't buy it. I am sure by now there is another obscure reason for banks to hang on to their money but for now this one takes the cake. I still think Merging Insanity is a better fit. Best of luck in all you do and thanks for reading.
As always if you think the Big Rapids area is a place you would like to live give us a call (231) 796-5253 or check out either link below and we will help you find a house so the Big Rapids area can be your home too. Thanks for reading.
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Randy Ostrander |
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