Buying our first Home, going to have to use an FHA Loan, found a house, but…?
House was bought for 93K, not sure when, put on market aug 31st at 200K, price now is 187K. The entire house has been redone. New Kitchen appliances, granite countertops, new doors, new windows, new roof, new HVAC, HW floors, new paint, new carpet.
Ive read there are some rules in place for FHA loans and house flipping and proving off worth of house. Can the seller outright not deal with me, or does he at least have to listen to offers?
Tags: but..., Buying, First, found, going, Home, House, Loan
2011/11/29 at 23:39:17
Seller has the right to decline anyone using an FHA mortgage. You cannot force a seller to do business with you
2011/11/29 at 22:53:56
it’s none of the seller’s business what kind of loan you’re getting. if your realtor sends a cover letter with your offer (good realtors do that), then he or she doesn’t have to mention exactly what kind of loan it is, only that you are pre approved for X amount and your credit is in good standing or something. when I bought my house the seller supposedly passed up higher offer because mine came with more solid financing.
an FHA loan requires a different inspection and if anything is found that needs to be repaired in less than 2 years, it must be fixed prior to closing. I don’t think that will be an issue for you if the house has been updated like you said, so the seller shouldn’t have a problem with an FHA inspection. any inspector your realtor recommends can do the FHA inspection. if the house has new paint & windows, you don’t need a lead paint inspection so that’ll save you a few hundred bucks. unless your lender requires that it be done.
as for the appraisal, unfortunately that takes longer than the timeframe you are given to do the inspection. after you go to contract, you may only have 10 days to get the inspection done. the appraisal will take longer so if FHA doesn’t like how it appraises, you have lost your money on the inspection. your realtor can tell you if that’s likely to happen or not.
2011/11/29 at 22:43:39
The realtor is right but there advice won’t help you. You need to run comps on the property and do some market research to see if that area is going to appreciate or not.
The seller doesn’t have to listen to offers just like you don’t have to answer your phone, so if you like the property talk to the seller and get to know them better…find out why they are asking the price they are. Talk to investors to see what they would value the property.
2011/11/29 at 22:00:01
No seller is obligated to accept any offer.
The FHA rules are for YOU the buyer. You cannot buy and flip within a certain time frame. Every house must be appraised before sale.
2011/11/29 at 21:56:31
The seller isn’t obligated to consider or even accept your offer. Even at full price the seller isn’t obligated to accept. A list price is merely an invitation to submit an offer.
realtor.sailor
2011/11/29 at 21:41:32
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