And for the SIXTH time....
I have yet another offer accepted on a house and am awaiting financing approval. I would say third time lucky but it would be the second time saying that. Maybe second time's the charm!?
This attempt - like all the others before it- has also had some complications. On the MLS listing online it was erroneously described as a "modular home". However, after some investigation on my part, I have (I believe) confirmed that no- it is indeed a standard one story frame construction home on its own cinderblock perimeter foundation (housing a crawl space).
Why is this 'mis-classification' a problem?
Both CMHC and lenders alike have special requirements and conditions for modular and mobile homes. There are restrictions for lending- higher rates, lower amortization, for instance. As far as I understand, CMHC hesitates to insure mortgages on modulars and mobiles unless they are "newer" (under 15 yrs old) or on their own foundation, on their own property, etc.
By clarifying that this property and this home are indeed of normal, standard construction we have many more financing options and are able to qualify for better mortgage rates. We also will have better long term VALUE for the property and the house since modulars and mobiles are not as highly desired or valued as a standard house. Perhaps even we may also have an easier time having it assessed and evaluated once upgrades and renovations are done, as well as come in at a higher value post-reno.
We have until April 12 to complete our financing; likely we will need the time. I suspect my mortgage broker is going to have to start over on our file now that we have confirmation that it is NOT a modular. She spent the past week looking for lenders specifically who would look at a modular on its own half acre property. Although it's great that we should be able to qualify for better rates and other lenders, I can only hope this does not cause confusion or concern at CMHC when she goes BACK to them to explain ohhhh, oops the selling realtor was incorrect in his description of the property.
How did that happen, is my big question!
From what I understand, the seller is an Executor of an Estate and is not familiar with the property for sale. I would argue that it is the selling agents responsibility, though, to confirm what product he is selling and representing(?) One would think that prior to listing a property, maybe *confirming* with the local authorities, the land titles office, etc just what the legal description of the property was (??) would be required prior to writing the MLS description rather than risking misrepresentation/ lack of offers as a result. I find this somewhat irritating honestly especially since the agent representing is allegedly so educated AND owner/president of the Realty in his city(!!!) Yikes.
Anyways. Arguably it worked to my benefit that it WAS mis-labelled. Not one person presentated an offer in 128 days prior to me doing so, and I was able to purchase for virtually a full $40k under the BC Assessment value for 2012. Yes, the property needs some lipgloss and updates. It has been vacant for almost a year and unloved probably for the last 2 yrs. With some elbow grease and a few bucks it certainly will be redeemed and escalated to the value of neighbouring properties.
This is the part that excites me.
IF.... we can finally pass through this phase. Gods willing.