Fannie Mae`s traditional loans require that real estate on a private road have an “appropriate, legally enforceable agreement, or a road maintenance agreement.” Fannie also points out that the registered document should contain the following: to lend on a property located on a private road, mortgage companies and banks need a copy of the registered road maintenance contract. The road construction contract explains how and by whom the private roads of a municipality are preserved. You can see what the VA is doing here. It guarantees loans on residential (non-commercial) real estate, but it is happy to help if it can reasonably. Private street… A hidden killer! Well, I hope everyone had a wonderful Thanksgiving, enjoyed the time spent with family and friends and took some time to restart this crazy business! I`m sorry I couldn`t finish my article in time last month, but I just had a calendar that wouldn`t give me a second to take a break! But it gave me the opportunity to reflect on a great topic for this month`s article, and it`s something I personally learned not so long ago during one of my VA transactions. I gladly classify them as one of the silent murderers for VA loans: the dreaded private road maintenance contract! First of all, it`s always a good idea to confirm the exact nature of the road classification with your local roads and bridges department. Just because it can be a dirt road doesn`t mean you think it`s also considered private. Many counties have different classifications of road types and it is always best to make the call and check. Another, and I sometimes get the impression that mortgage professionals are not doing enough, is to take responsibility for the transaction and recognize the fact that you are a composer! Buying home loans through the Consumer Financial Protection Bureau (CFPB) now looks like a symphony. I mean, it`s always been a process that needed coordination, but now more than ever, it takes a “composer” to take that baton and guide a group of individuals in creating an exciting and special work of art – helping a veteran realize the American dream of home! Nothing makes my day like a diploma, but closing a home loan for a veteran has a special place in my heart, I hope it will do it for you too! Since an important part of the directive is whether the road is public or private, the type of surface is not always a determining factor. In fact, the FHA does not need a road maintenance contract. The HUD 4000.1 manual states that “private roads, including common entrances, must be protected by registered facilities, permanent ownership shares or owned and maintained by an association of owners (HOA).