Anybody in PS who have refinanced recently?

NEW -> Contingent Buyer Assistance Program
The lender is the wrong one here.  Doesn't matter if you have two HOAs.  You only need coverage for the common areas (which the HOA has) and then a normal SFR type coverage for your home.  The lender is confused since it's labeled as a condo.  Who is your lender? 
 
jmoney74 said:
The lender is the wrong one here.  Doesn't matter if you have two HOAs.  You only need coverage for the common areas (which the HOA has) and then a normal SFR type coverage for your home.  The lender is confused since it's labeled as a condo.  Who is your lender?
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Chase

I explained that ours is a detached condo and that we have our own homeowners insurance. I confirmed this with the insurance broker of our community and they said that normally the community's insurance is for common areas only.

It's too late to shop for another lender now that the rates have gone up. Chase will not even give me a letter stating the reason why they are declining my loan. I smell BS but what options do I have?
 
man.. Praying that you can get it resolved.  Can you speak to the lenders management?  Surely there is someone to escalate this to.  so strange. 
 
Detached condos are common in places like Irvine but are still a novelty nationally.  Don't expect your loan processor in Florida to know what a detached condo is.  As far as many loan processors and underwriters are concerned, there are only condos and sfrs so if they consider your detached condo to be a condo, you may have to pay higher interest and insurance rates.
 
rideBMC said:
In hindsight, I should've gone with a local lender who is more familiar with OC/Irvine real estate.
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Plus your rate must have been better than it is today?  I would continue to fight it.. see if you can escalate it. 
 
rideBMC said:
I do and it is through AAA home insurance. However, the lender is saying that the community/HOA must have building insurance not just common areas.

jmoney74 said:
rideBMC said:
Detached condo but the lender is saying that it does not matter. I tried to argue that we do not share a wall with anyone.

jmoney74 said:
Do you have an attached wall or is our home not attached?
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If you have a detached condo then you need insurance for the building... just like a regular SFR.
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HOA does not provide coverage for the individual detached condos, that's only the case with attached condos.
 
rideBMC said:
AW said:
hmm, with 2 hoa's, it's def not the master hoa (PS), it has to be the sub association, i'm assuming the dues aren't cheap either (that it covers only front landscaping)
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yes, it has to be from the sub-association but unfortunately they do not have it and according to the lender i will never be able to get a loan if the community does not have it >:(
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Lender doesn't know what they are talking about.  As long as you have a full homeowner's insurance policy with a high enough rebuild amount you should be good to go. 
 
USCTrojanCPA said:
rideBMC said:
I do and it is through AAA home insurance. However, the lender is saying that the community/HOA must have building insurance not just common areas.

jmoney74 said:
rideBMC said:
Detached condo but the lender is saying that it does not matter. I tried to argue that we do not share a wall with anyone.

jmoney74 said:
Do you have an attached wall or is our home not attached?
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If you have a detached condo then you need insurance for the building... just like a regular SFR.
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HOA does not provide coverage for the individual detached condos, that's only the case with attached condos.
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We all know that a detached condo is a SFR.  It is a SFR called a "condo" only because of certain legal lot size and setback regulations.  The problem is many loan processors and underwriters do not know that a detached condo is in fact a SFR and will treat it as a "condo" and no amount of argument on the borrowers part will convince them that they are wrong. 

Unfortunately, the only way to insure you are treated as a sfr when buying a detached condo is to use the builders lender.
 
I wish Chase's underwriters are as smart as you guys. This is a refi and not a new home purchase so I cannot go with the builder's lender.

I escalated it but dont really expect a reconsideration from Chase for reasons mentioned by Happiness above.
 
yeah, as long as the rebuild amount covers it should be fine

i'm thinking about some of the sub associations where they have detached condo plus paired/attached condos in the same build (like Legado), the paired gets coverage and the detached doesn't, i have to look up their brochure to see if their hoa fees are different?
 
Section 1, dwelling coverage. It's around $200/sq ft-ish?  Cost to rebuild the dwelling (not any land that it's on)
 
Recently refied in PS. Have detached condo with 2 HOAs. Refi went fine but a couple months after close the new loan servicer sent a letter asking for HOA insurance docs. So far I haven't had time to look into it.
 
paperboyNC said:
Recently refied in PS. Have detached condo with 2 HOAs. Refi went fine but a couple months after close the new loan servicer sent a letter asking for HOA insurance docs. So far I haven't had time to look into it.
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Please update this thread after you send your HOA insurance to the lender and what they say about it. Thanks
 
rideBMC said:
jmoney74 said:
The lender is the wrong one here.  Doesn't matter if you have two HOAs.  You only need coverage for the common areas (which the HOA has) and then a normal SFR type coverage for your home.  The lender is confused since it's labeled as a condo.  Who is your lender?
Click to expand...

Chase

I explained that ours is a detached condo and that we have our own homeowners insurance. I confirmed this with the insurance broker of our community and they said that normally the community's insurance is for common areas only.

It's too late to shop for another lender now that the rates have gone up. Chase will not even give me a letter stating the reason why they are declining my loan. I smell BS but what options do I have?
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Given that they told you that your homeowners covers walls and inside only, I think you need to make sure that you homeowners covers everything and that it is very clear that it covers everything on the documents that you have provided them. 
 
Bullsback said:
Given that they told you that your homeowners covers walls and inside only, I think you need to make sure that you homeowners covers everything and that it is very clear that it covers everything on the documents that you have provided them.
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This is what my homeowner's insurance policy covers, please advise if there is anything missing:

  • Dwelling
    Other Structures
    Unscheduled personal
    Loss of use
    Personal liability
    Medical payments to others

I think the above covers everything else that the HOA policies do not cover and should be adequate. Anything else I am missing?
 
Just make sure it's not an HO-6? Policy and that it is indeed a regular SFR policy. 
 
jmoney74 said:
Just make sure it's not an HO-6? Policy and that it is indeed a regular SFR policy.
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It's HO-3, which I believe is the standard minimum for SFR (please correct me if I'm wrong)
 
That is correct. So what now?  Can chase just contact an insurance agent to review?
 
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