Airpark Home Question

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dweyant

Pre-takeoff checklist
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May 3, 2012
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377
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Georgetown, TX
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Display name:
Dan
Help please!

I was less than 10 days from closing on a house in an airport community.

Got a call from the loan officer this morning and was told that they would not be able to loan on the property because it is an aviation community that requires one of the property owners to at least have a solo endorsement.

Can anyone tell me, is this common? Any ideas how I can convince another lender that this isn't uncommon (is it?).

Any help or suggestions would be appreciated. Obviously time is of the essence on this. We are closing on the house we are selling on 11/6.

-Dan
 
Not trying to be a smarty pants but... Go get a solo endorsement, a solid 3 day weekend ought to knock it out.
 
Does the aviation community in question really require a solo endorsement?? I've never heard such a thing. Either way, I'm not sure why the bank would care.
 
bartmc said:
Not trying to be a smarty pants but... Go get a solo endorsement, a solid 3 day weekend ought to knock it out.
Click to expand...

The issue isn't me, I'm almost done with my commercial. The issue is the lender is refusing to lend on it because of the requirement.
 
Anymouse said:
Does the aviation community in question really require a solo endorsement?? I've never heard such a thing. Either way, I'm not sure why the bank would care.
Click to expand...

They are saying it could negatively impact resale value.
 
dweyant said:
The issue isn't me, I'm almost done with my commercial. The issue is the lender is refusing to lend on it because of the requirement.
Click to expand...

And unfortunately, you're just now finding this out.... bummer.

Perhaps talk with other owners in the airpark, find out who their lenders are, and start shopping them.
 
Does your purchase contract have a mortgage contingency?
 
Some airparks ran into serious trouble when the percentage of non-pilots became too large and tried to shut the aviation side of the airpark down (e.g. by turning the runway into a dog-park).

I understand where the requirement comes from.

If you want the house, just get the solo endorsement. At a LSA school you should be able to get this done in a weekend.
 
dweyant said:
The issue isn't me, I'm almost done with my commercial. The issue is the lender is refusing to lend on it because of the requirement.
Click to expand...

Okay, so I definitely don't see the problem. I agree with Aggie. Get a new lender.

You're not using Wells Fargo by any chance, are you?? I damn near walked away from them last one they did for me due to their idiotic demands. I still wish I had.

On to other stuff... You might want to talk to some of your future neighbors and see who they have their mortgages with.

EDIT: Duh!! Aggie said that too!!
 
weilke said:
Some airparks ran into serious trouble when the percentage of non-pilots became too large and tried to shut the aviation side of the airpark down (e.g. by turning the runway into a dog-park).

I understand where the requirement comes from.

If you want the house, just get the solo endorsement. At a LSA school you should be able to get this done in a weekend.
Click to expand...

It's not him, the mortgage company don't like the terms.
 
weilke said:
Some airparks ran into serious trouble when the percentage of non-pilots became too large and tried to shut the aviation side of the airpark down (e.g. by turning the runway into a dog-park).
Click to expand...

This really upsets me. I don't understand why someone (or in this case a group) of people would move in to an airport community, THEN try to change it.

Don't mean to derail the thread, it's just...ugh. :(
 
AggieMike88 said:
And unfortunately, you're just now finding this out.... bummer.

Perhaps talk with other owners in the airpark, find out who their lenders are, and start shopping them.
Click to expand...

That's what I'm thinking. Im sure some people had to borrow money for their homes. Find out who they used.
 
It is not common. It is very unusual for an air park.
 
AmazonChitlin said:
This really upsets me. I don't understand why someone (or in this case a group) of people would move in to an airport community, THEN try to change it.
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The same reason why some women marry a beer drinking pilot and sailor and then try to turn him into a potted plant.

Airparks are a bit like golf developments in that they have built in open-space that sets them apart from the usual cookie-cutter developer deals.
 
bartmc said:
It's not him, the mortgage company don't like the terms.
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I read this....

Got a call from the loan officer this morning and was told that they would not be able to loan on the property because it is an aviation community that requires one of the property owners to at least have a solo endorsement.

....to mean that this was in the restrictive covenants of the development and that the bank didn't want to be exposed to the risk from him not being in compliance with the HOA rules (the risk for the bank is that the HOA moves against him after he buys and he walks away from the property).

I have looked at an airpark, and they had a requirement for the purchaser to have one aircraft registered in his name and based on the field in the required hangar.
 
Airparks just seem horrible to me. Own your own field or live near the kind of airport you like.
 
weilke said:
I read this....

Got a call from the loan officer this morning and was told that they would not be able to loan on the property because it is an aviation community that requires one of the property owners to at least have a solo endorsement.

....to mean that this was in the restrictive covenants of the development and that the bank didn't want to be exposed to the risk from him not being in compliance with the HOA rules (the risk for the bank is that the HOA moves against him after he buys and he walks away from the property).

I have looked at an airpark, and they had a requirement for the purchaser to have one aircraft registered in his name and based on the field in the required hangar.
Click to expand...
Post #4
dweyant said:
The issue isn't me, I'm almost done with my commercial. The issue is the lender is refusing to lend on it because of the requirement.
Click to expand...
 
So it sounds like the lender is concerned about the marketability of the property due to the restrictive covenant.
 
AmazonChitlin said:
This really upsets me. I don't understand why someone (or in this case a group) of people would move in to an airport community, THEN try to change it.

Don't mean to derail the thread, it's just...ugh. :(
Click to expand...

Sometimes they don't try to close it, but I've seen them not care and sort of let the runway etc... go unmaintained.

We have three people who have homes on our airport that didn't have pilots licenses. One subsequently (actually both husband and wife) got licenses, one is a divorcee of a flying pilot who bought the lot, and one just bought into a house because they liked the lot. Not had any problems with any of them. We do have a few lots/houses owned by pilots who don't currently have airplanes (and in some cases hangars) on the field.

Oddly our bigger problems are with some actively flying pilots who don't think then HOA should pay to maintain the roads (which are taxiways mostly) and runway the way we have been.
 
[

Oddly our bigger problems are with some actively flying pilots who don't think then HOA should pay to maintain the roads (which are taxiways mostly) and runway the way we have been.[/QUOTE]

Then how on earth do they think they will be maintained?
Paul
www.indianhillsairpark.com
 
Dan,

Feel free to PM me if you need more assistance but if all parties are committed to the sale, you should be able to get the seller to agree to an extension to allow you shop your loan. I doubt there is a long line of buyers behind you.
 
Then how on earth do they think they will be maintained?
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I don't know, I tried to get specifics out of this faction but I think they just wanted to complain more than do anything else. They were complaining about the large amount of landscaping charges in the budget. I pointed out that most of that went to maintain that 3000' foot long strip of grass which was kind of essential to the community.
 
How is it that you are almost finished with your commercial but don't already have a solo endorsement?
 
oldShar said:
How is it that you are almost finished with your commercial but don't already have a solo endorsement?
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Uh, please read my post....

Like I've said a couple times, the issue is not me, the issue is the lender not wanting to loan on a property that requires a solo endorsement.

-Dan
 
dweyant said:
Uh, please read my post....

Like I've said a couple times, the issue is not me, the issue is the lender not wanting to loan on a property that requires a solo endorsement.

-Dan
Click to expand...

The concern for them is marketability with the restrictive covenant in place in case they are left selling the property.

Get an extension of the closing date, find a different lender.
 
hopefully you can save some $$ by having the appraisal 'transferred' to the new lender.
 
Ok,

Just in case anyone cares, I have an update.

Found a local lender that is willing to underwrite the loan, and do everything they can to get it closed next week, so hopefuly everything will work out.

I do want to call out the very poorly run company that turned down the loan.

They swore up and down that this was my fault because I did not disclose to them that the house was in an Aviation community. I however remember having a conversation with the loan office discussing flying and airplanes.

Tonight I went through all of my e-mails and found in our very first e-mail exchange under special considerations. "House has a 2500 square foot hanger, and is on a private/community air strip".

So, in light of that I am going to strongly suggest you do no do business with First Financial Services Inc out of Charlotte N.C.
 
dweyant said:
Ok,

Just in case anyone cares, I have an update.

Found a local lender that is willing to underwrite the loan, and do everything they can to get it closed next week, so hopefuly everything will work out.

I do want to call out the very poorly run company that turned down the loan.

They swore up and down that this was my fault because I did not disclose to them that the house was in an Aviation community. I however remember having a conversation with the loan office discussing flying and airplanes.

Tonight I went through all of my e-mails and found in our very first e-mail exchange under special considerations. "House has a 2500 square foot hanger, and is on a private/community air strip".

So, in light of that I am going to strongly suggest you do no do business with First Financial Services Inc out of Charlotte N.C.
Click to expand...

Cool!! Hope they can make the deadline.


It just so happens that I'm staying next door to a First Financial branch. I'll go over there right now and pee on their front door.
 
dweyant said:
Ok,

Just in case anyone cares, I have an update.

Found a local lender that is willing to underwrite the loan, and do everything they can to get it closed next week, so hopefuly everything will work out.

I do want to call out the very poorly run company that turned down the loan.

They swore up and down that this was my fault because I did not disclose to them that the house was in an Aviation community. I however remember having a conversation with the loan office discussing flying and airplanes.

Tonight I went through all of my e-mails and found in our very first e-mail exchange under special considerations. "House has a 2500 square foot hanger, and is on a private/community air strip".

So, in light of that I am going to strongly suggest you do no do business with First Financial Services Inc out of Charlotte N.C.
Click to expand...

Ok, another update....

I heard back from the Loan Officer's manager this morning. In light of me proving that the loan officer is a liar, they have agreed to reimburse me for the cost of the Appraisal. I'm still out the rush fees to try and get everything done quickly on the new loan, but at least I'll get back the $425 the appraisal cost me.

-Dan
 
dweyant said:
Ok, another update....

I heard back from the Loan Officer's manager this morning. In light of me proving that the loan officer is a liar, they have agreed to reimburse me for the cost of the Appraisal. I'm still out the rush fees to try and get everything done quickly on the new loan, but at least I'll get back the $425 the appraisal cost me.

-Dan
Click to expand...

Heh. Ask them if they always charge extra to rush to failure. :)
 
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