Will we get the place? :( ( FHA loan vs HOA insurance)

Re: Will we get the place? :( ( FHA loan vs HOA insurance)

• sjb&apa

  August 2011

  Is it the lender that is requiring more insurance coverage, or is there a minimum set by the FHA program?

  If it's the lender, I would try talking to another lender to see if they have the same requirement.

  If it's a requirement of the FHA loan program, then you're probably going to have to choose between not buying the place or getting another type of loan. Or, you could talk to the HOA and explain that their decision not to increase insurance coverage will make it impossible for anyone to buy in that complex with an FHA loan, and hope they will reconsider in order to make their complex more desirable and accessible to buyers.
  

  
  Mr. Sammy Dog

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• arthiom

  August 2011

  Higher HOA insurance rate is the lender's requirement.
  
  Your right, we are trying another lender for a different type of loan.
  
  Meanwhile..I hope we come across a lender in the bay area that does FHA with the current HOA insurance. (fingers crossed!)
  
  

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• sciteach member

  August 2011

  Try smaller, local banks. I don't know anything about the HOA part, but we found local banks and credit unions to have very different mortgage products. GL

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• The Mrs.E

  August 2011

  Financing aside, I would consider it a red flag that the HOA has inadequate insurance and is unwilling to change it.  I would ask a lot of questions to try to find out if the lender is actually being too strict or if the HOA really has inadequate coverage.  If nothing else, this would help you ensure that you get adequate coverage to make up for what the HOA isn't covering.       

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