Home Buying in 21037>Question Details

Corrielou79, Home Buyer in 21037

Contract fell through due to FHA inspection...want to put new contract on house for a conventional loan...

Asked by Corrielou79, 21037 Thu Jul 16, 2009

If I had a contract on a home and the house would not pass FHA as our planned mortgage type, and then the realtor puts it back on the market for about 20,000 cheaper, could I sign another contract on the house this time with a conventional loan? Or can you only ever have ONE contract on a house?

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Hi Marnie,
If your contract was terminated and releases signed, you might be able to write another offer contingent on conventional financing as long as you qualify through the mortgage company.You should not have more than 1 contract at a time on a property.Donna Wisniewski,Champion Realty @donnawis@verizon.net
0 votes Thank Flag Link Thu Jul 16, 2009
You can always put another contract in!
The tough part will be getting the listing agent and the seller to understand how you can switch to a Conventional loan at this point -- and you need to find out if that is even feasible for you?
For the FHA appraisal -- were there structural issues that the seller refused to repair? Or was the appraised amount too low? The answers to those questions help to determine whether the seller may consider another contract from you.
The first step is to call your REALTOR (R) and your mortgage person to find out if going to a conventional loan is a possibility for you. Then have your REALTOR (R) call the other agent to discuss a contract.
Good luck to you!
Marney Kirk
Keller Williams Excellence Realty
0 votes Thank Flag Link Thu Jul 16, 2009
Hello Corrielou79, Home buyer! You may always submit a new offer. To be convincing, have your preapproval letter with the type of financing you are approved by your lender be submitted with your offer. Have your agent write a summary letter expressing your sincere interest in the property. It is not mentioned why FHA loan did not complete approval lending process for your loan. I have read yesterday about new FHA 203 loans, that allow maintenance costs to be part of your loan. These work well on distressed properties, shortsales, or properties that have deferred maintenance and those costs need to be covered. Ask your lender to explain to you about this type of loan and see if this is an option for you. The other FHA loan may not have covered the needed maintenance costs for you and the seller can not do it too. If you email to me directly, I can forward to you the information I learned about yesterday regarding this type of financing to help buyers for properties with deferred maintenance issues. You then can review the loan type and see if it applies to your particular purchase type of property. You can inquire directly as well with your lender about this type of loan too for all the particulars to see if it applies to your purchase needs. If the seller dropped the price, you may also get a bitter price now! You must show you can qualify to open and close the escrow and if fallo out should happen, it would not be from not being approved for your financing. Best of Luck! By the way...who do you know that may be interested in Humboldt County, California Real Estate! If you can think of anyone from your sphere of influence I would love to hear from you or anyone who you may be able to refer to me for my wonderful listed properties here in Humboldt County! Please http://www.2911SandPointeDrive.com http://www.628-652PacificAve.com http://www.3372PrairieAve.com Thank you! Sincerely, Saundra Allman
0 votes Thank Flag Link Thu Jul 16, 2009
You can submit a new offer, but you must convince the Listing Agent that you can close this time. It is going to be even harder if the listing is an REO. Good Luck. Why didn't your agent ask for an Extension of Time Addendum? You may want to keep your stronger offer price.
0 votes Thank Flag Link Thu Jul 16, 2009
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