Profile picture for bobby409854

Two buildable tax parcels, one mortgage

Hi. My contact at CW says she cannot do a 750K loan on a property which is comprised of two seperate, buildable lots. One lot has a house, the other a shop. She says if the shop lot is buildable at all (tear down the shop, put in a house), then the loan can't be done. This doesn't make any sense to me. Has anybody ever heard of this?
  • April 27 2009 - Cannon Beach
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Answers (5)

FNMA (Fannie Mae) allows for 2 parcels given certain criteria.
FHA does not allow for 2 parcels.... the property needs to be under one legal description.

for FNMA guides refer to page 272 part b subpart 2 Chapter 3 of the selling guide...

for FHA refer to 4150.2 Chapter 3-6 (A) (1)....

this should answer your questions directly....
  • April 29 2013
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Sounds like you are a lender or Realtor.? If so, call CW and ask to speak with a Senior Underwriter and see if you can get to the bottom of this.

Most likely the Seller will have problems selling to anyone unless they are a cash borrower or us some type of Private/Hard Money.Also, some of teh smaller Banks might be more agreeable.
  • May 12 2009
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Bobby,

To the best of my knowledge one loan per parcel. .... Good luck, Rudi
  • April 27 2009
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Profile picture for bobby409854
They are both residential, and I do believe the loan was going to be FHA. As far as combining the two parcels, I don't think the sellers will go for it and I'm afraid they will bail if I ask them to do that.

Part of my reason for asking the question is to know if they will have trouble selling to anybody at all, not just me. If that is the case, we all need to know that at this point in the discussion / transaction.
  • April 27 2009
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Profile picture for Lindsey M. Bishop
Yes I have ran into this on a loan before. The underwriter saw the appraisal and title work appearing with 2 parcels. The appraiser had to comment on this on their report from the building department on the different sizes and buildability on the 2 parcels. If both parcels were "buildable" they would not take the loan. This was for a FHA loan though, no conventional so I can not be 100% certain on if they carry the same guideline. Is there anyway to combine the 2 parcels? Is one parcel commerical and the other residential?
  • April 27 2009
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