Glendale, AZ · Member since 2015 · 4 posts · 0 votes
Hello everyone, I am in desperate need of assistance. We are buying our first house. We've been waiting 6 months to buy our dream home. The seller's bank wants us to put a deed restriction so we cannot resale for 90 days. We are fine with it, this home is for us to grow our family in and not to fix and resell. Weve been approved for a conventional loan but we are not able to get funding due to the deed restriction. According to my bank, Fannie Mae flat out refuses to fund loans with deed restrictions and Freddie Mac will but you have to meet certain requirements. We arent sure what these requirements are, but apparently we do not qualify. I am devastated and dont know what else can be done. Has anyone else had this issue and gotten around it? Is what my bank telling me true or is there something else we are not thinking of? Any advice, even if it is negative will be helpful.
Rental Property Investor · Montgomery, AL · Member since 2012 · 18 posts · 2 votes
11y
I think your mortgage broker should be able to get an exception that rule is to stop you from flipping it, I am sure Fannie Mae also puts the same restriction on their deeds so that's the pot calling. I would think you should be able to do an affidavit stating you are an owner occupant and get an exception if your mortgage broker is savvy enough and knows what they are doing also try calling another local mortgage company/broker that's not a bank they tend to have better contacts with underwriters and can get this handled easier than say a bank. Since they do a lot more loans
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
11y
@Kelcie Grabill I believe your loan officer is an idiot, to say it mildly. Part of the requirement for a FANNIE loan is you will occupy it for at least a year. It's remotely possible I am wrong, I'll check tomorrow, and repost if I am.
Glendale, AZ · Member since 2015 · 4 posts · 0 votes
11y
@WayneBrooks Thanks Wayne! I appreciate that very much. Weve been in contact with a secondary lender and he pretty much is saying that he believes my bank is wrong too. This is a short sale that we have beeen waiting to get since February. We were supposed to close on Friday of last week and now today they are telling us this. It has been a really frustrating process all together, but we are determined to wait it out until we can go no further!
Glendale, AZ · Member since 2015 · 4 posts · 0 votes
11y
update! A few days after this they told us it wouldnt be a problem. Then on Tuesday this week rhey told us to find another lender because they couldnt do the loan. My agent contacted a lender friend and he told my agent that they were wrong. He explained the situation to my lender, who explained it to underwriting. It turns out that Fannie won't do the deed restriction if it is for an affordable housing loan but they WILL do it for a conventional loan. They told us no because they were looking at tbe wrong guidelines. Somce we didnt have time to switch lenders as our contract is up the 28th, we had no choice but to stay with the lender. But we did get the clear to close and should be signing any day.