Realtors Encourage Residents to Speak Out on FHA Loan Issues
Realtors are encouraging folks with reverse mortgages to speak up against issues they may have run into with Federal Housing Administration loans beginning last fall. One group has decided to take the reigns through an educational campaign, according to a recent Reverse Mortgage Daily report.
"Arizona homeowners first began running into issues with FHA loans last fall, when the administration and the Department of Housing and Urban Development began enforcing the so-called 'free assumability' clause," according to RMD.
"Certain 55-and-up communities — including Sun City and Sun City West in Arizona — have private recreation departments that require homebuyers to pay a one-time fee of $3,000 to $3,500 to support the ongoing upkeep of shared amenities, such as swimming pools and clubhouses."
These fees happen to play a huge part when trying to secure an FHA loan for such properties. In short, you can't. The FHA has rules in place that prevent them from issuing reverse mortgages to buyers because the one-time fee is not associated with the property itself.
“If you and your neighbors think FHA product availability is important to a healthy real estate market in your association, petition your Board of Directors to change the governing documents,” a new resource from the West Maricopa Association of Realtors (WEMAR) reads, according to the report.
“Or run for the Board of Directors and direct the change you want.”
West Maricopa Association of Realtors also revealed that reverse mortgages could be the best bet for retirees that are struggling with rising costs of living. They believe that applicants are having their futures limited by being unable to access home equity.
To learn more about the WEMAR message and how some residents can advocate for FHA rule changes, click on the image above.