Saying “No” to FHA Mortgages?

by Peter G. Miller
September 9th, 2007

When it comes to write out a sale offer some sellers have a stipulation: No FHA financing.

They worry that an FHA appraisal will be to strict and will require a bunch of nit-picky repairs and upgrades to qualify the home for an FHA loan — repairs and upgrades for which the seller will have to pay.

What can you do in such situations?

Folks, have you noticed that the marketplace has changed. In most local areas, but not all, it’s a buyers’ market. If you’re a purchaser you’re in command.

It’s time for sellers to understand the realities of life: Unless buyers are lining up outside the front door with bids, the days of multiple offers and high demand are over. In many markets, if you have a buyer with an interest in your property you would be wise to put up with their requests and requirements — otherwise it may be months before an alternative offer is made.

So if a seller says he or she will not accept an FHA loan, at least talk with your broker about it. There may be more “give” than anyone is willing to admit.

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This entry was posted on Sunday, September 9th, 2007 at 9:48 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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