FHA Mortgage – home in NEW Zip Code

We recently encountered an instance of how an outdated DATABASE of USPS ZIP code can affect a real estate transaction.

The evening prior to closing the MORTGAGE BROKER called to say underwriter was not able to approve FHA Loan for manufactured home in the ZIP code 22551.

We did a ZIP code check on usps.com and confirmed the 22551 ZIP, because the tax records and contract reflected ZIP 22553 associated with the home at the current address. Living in a “new” ZIP code (3 years old?) ourselves and never having heard of 22551, we suspected an out of date ZIP code database was the problem. (Three years later in 22556 we STILL have problems :-/

Quick call to Spotsylvania Courthouse revealed that the United States Postal Service had in fact recently (maybe 6 months ago) created the 22551 ZIP and the County is in the process of changing all their records to reflect the new ZIP.

It is not that the loan could not be approved for that particular type of home. Apparently, the system did not recognize the ZIP code and instead of reporting the error as INVALID ZIP Code or something equally as specific, it simply would not authorize the loan. :-/

Once Spotsy County changes its tax records to reflect the new 22551 ZIP Code, I can only hope that FHA and other lenders update their databases. If not, then I guess there will be quite a few questions then and not a trace of the previous 22553 ZIP code will be there to provide a clue as to why the loans can’t be approved.

Those of us who live in new ZIP codes respectfully request that cable, service companies, etc. update your ZIP code database quarterly. Please! (We real estate types would prefer it be sooner rather than later.)

NOTE: BTW – If you live in a new ZIP code and the company’s database has NOT been updated, you cannot request online service for cable company or appliance repair using my correct USPS ZIP.

Their systems say: No service is available. (There is no mention that the ZIP code is not recognized:-(