The debate continues as buyers are getting mixed reactions regarding getting a Wrightwood Real Estate FHA loan approval. I say debate because even myself, a Wrightwood Real Estate agent for Mountain High Realty, have investigated the problems surrounding this issue and encourage lenders and brokers alike to join in the discussion to arrive at a definitive answer. Are FHA loans indeed doable in purchasing Wrightwood Real Estate? According to the FHA Resource Center there is a ban on the entire Wrightwood region. Now, I have been told by colleagues and have seen on various forums that FHA does not ban entire zip codes. But in fact, after speaking with a FHA representative, there is a prohibition indefinitely for the 92397 zip code.
The reason for this, and I quote” it is due to the increased risk of soil liquefaction resulting from shallow soils and steep slopes and the close proximity to the San Andreas, Punch Bowl and Cajon Valley earthquake faults, FHA returns the following case number assignment warning for Real Estate in Wrightwood, California: Warning: Appraisal problem (unstable soil) for 92397 Wrightwood areas: property specific approval required due to liquefaction, FHA will insure the loan only if the lender obtains a “geotechnical” survey prepared by an engineer or geologist with competency in the field,” as stated by Rob Chrisman from The Daily Mortgage News and Commentary. However, the representative informed me that the only thing FHA requires is a geotechnical survey prepared by a competent and qualified person. However, in addition to the FHA required survey, the lender may require a direct endorsement underwriter and/or whatever stipulations the lender deems appropriate to secure the loan of Wrightwood Real Estate. With that said the loan process may get started, but without insurance on the loan, the bank will not be able to indemnify the loan. So what does this mean? Without insurance on the loan; they cannot sell it on the secondary market, therefore the bank will halt progression.
Feel free to call Mountain High Realty or the FHA Resource center for any questions you may have about how FHA effects Wrightwood Real Estate.
(800) CALL-FHA
