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I am a Real Estate Agent and presented an offer on a house that is on what is considered a private

street in Worcester.  I was told that FHA will not give loans on private streets. have you any knowledge of this.
  • October 04 2011 - Worcester
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Answers (8)

Cynthia,

I just had this issue come up today on a transaction and have had it happen a few times in the past.  There needs to be a road maintenance agreement.  I have ended up drafting this a few times to get a deal through and am more than happy to assist you and your client with this issue.  You can call or email me if you would like.

Sincerely,

Gregg Lieberman
  • October 13 2011
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Just had a similiar problem with USDA (Rural Development).  After the appraiser, the builder, and the bank spoke to them, we had to resolve it by adding an weatherproof easement.  The problem was the 'private drive' was not in the name of the purchaser.  If your financial institution contacts them they can give specifics on how to close your home.

Oh...  FHA may speak with you as well.  The regional office of USDA is not real estate agent friendly.
 
Best of luck.  God Bless.
  • October 05 2011
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Cynthia,

Here's a link from the FHA website:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/ref/sfhp1-15

Happy funding, Rudi
  • October 04 2011
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FHA will accept properties on private streets provided adequate pedestrian and vehicle access is present..  If not owned by an HOA, there must be recorded easements and and a maintenance agreement.  Access must be available in all weather.

No Sharon, every State is not different.  FHA guidelines are for every state and consistent throughout.

  • October 04 2011
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Profile picture for PukonYukon
Here it can work if there is a road maint. agreement with the HOA.
I bought on a private road.
  • October 04 2011
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I am in the process of doing this - just wanted to know if anyone else had run into this. The Listing Agent wants an underwriter to okay it before the offer will be considered- not the Mortgage originator.
  • October 04 2011
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I live on a private street and have had no problems nor have my neighbors.  You will get a faster response if you contact a mortgage broker.  Also chat with your office broker.  This should not be a problem for your client.  Good luck.

John Kenney

[contact information and website removed by Zillow moderator]

  • October 04 2011
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Profile picture for Sharon Lewis
Contact FHA and get their opinion. Or ask a local mortgage broker you deal with.
Every state is different, rules are different. To get an answer here on these boards  may not be the right advice for your client. To properly represent your clients, go the extra mile and get the correct advice from the correct source.
  • October 04 2011
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