A few years ago, one of my agents had a good friend contact her to buy a home. She spent almost a month showing this couple house after house until finally they settled on a fairly new double wide on two acres of land that was listed on the MLS.
The offer was accepted by the seller and the mortgage broker started the loan process for an FHA loan. Everything was on go. The credit was good, the appraisal came back good, the inspections were good and the foundation and tie-downs all met FHA approval. According to the lender, we were just waiting on the final approval from FHA to set a date for closing.
Suddenly, it took a turn for the worse. Somehow FHA discovered that the mobile home had been previously moved to the site from another location and FHA denied the loan. Even though the move was made within the same county, and there was no previous mortgage, it didn't matter. Not only did this stipulation completely kill the deal, our buyers lost all the money they put out for the appraisal and the inspections.
FHA would not make a loan on a mobile home that had been moved period. They said it could only be made if the mobile home was on the same property that it was originally bought and set up from the manufacturer.
Who knew? You would think that the lender would have asked this question from the start before he ordered the appraisals and inspections. After all, he should be familiar with FHA rules and guidelines. Or, was this something the listing agent should have known and stated on the MLS?
The buyers ended up losing about a thousand dollars with very hard feelings. We truly felt bad for what happened and offered all we could to make things right. We even offered to find them another place and give up our commission to make up for their loss but the buyers were bruised and didn't want to go any further. What doesn't kill you not only makes you stronger, but wiser.
This post is an entry in the Active Rain Challenge: What Doesn't Kill You Makes You Stronger