Sun Cities FHA loan ban lifted? Some loans could still be denied

Sun CityRusty Bradshaw | Your West Valley

Some homebuyers in the Sun Cities are no longer facing an obstacle to obtaining a loan created by a conflict between FHA and rec centers’ policies regarding preservation fees.

A U.S. Housing and Urban Development ban on FHA loans was lifted, opening the door for such loans to go forward if all other requirements are met. While the ban was lifted some time in April, according to Stephanie Smelnick, FHA/HUD Arizona field office director, few people knew of the action until last week. Greg Eisert, Sun City Home Owners Association board member and Governmental Affairs Committee chairman, told the SCHOA board during its June 27 meeting, he had recently talked to Ms. Smelnick who told him of the HUD action to lift the ban. Residents have also asked Recreation Centers of Sun City board members in their subsequent meetings since January about the status of the situation, only to be told RCSC was in communication with HUD officials to resolve the problem.

However, the ban lifted was strictly for condo sales, Ms. Smelnick added.

“Our policy was reviewed by headquarters,” Ms. Smelnick said. “If you have a condo with a rec fee, as long as that fee benefits residents in that area, loans will be approved.”

READ ON: 

Share this!

Additional Articles

News Categories

Get Our Twice Weekly Newsletter!

* indicates required

Rose Law Group pc values “outrageous client service.” We pride ourselves on hyper-responsiveness to our clients’ needs and an extraordinary record of success in achieving our clients’ goals. We know we get results and our list of outstanding clients speaks to the quality of our work.