Home Buying in 33180>Question Details

liliana, Home Buyer in Miami, FL

Do I have to offer more or less if I want to purchase a house with a FHA loan?

Asked by liliana, Miami, FL Tue Oct 30, 2012

Help the community by answering this question:


The market right now is very competitive and cash is still king.
The reason why you may be prompted to offer more when structuring an offer with FHA financing is because of the additional challenges that are presented in obtaining an FHA loan along with the loan down payment.
The notion that FHA loans are more difficult to obtain still exists (although much has changed in this realm and FHA loans are not much different anymore), you will have to put more weight on your offer.
Amongst increasing the price, you can also think about offering a quick inspection period and high deposit. Also, work with your lender to provide you with a DU (Desktop Underwriting) approval which will give the Seller more confidence in your offer.
All the best to you,

1 vote Thank Flag Link Tue Oct 30, 2012
It usually does not make a difference. You are limited to what you can buy in cond and apartments. There is a hud website to find out which blds are available and approved.

If you would like to discuss I am available to review with you we do many FHA loans.
0 votes Thank Flag Link Tue Jul 16, 2013
LIliana, a lot of times if you qualify for FHA you will qualify for Conventional which allows for 97% financing. I have been doing loans for 16 years here in South Florida and would be happy to help you in anyway I can. Please feel free to call me directly at 239-471-9829
0 votes Thank Flag Link Wed Jul 3, 2013
It took you a while Irina but glad you responded and responded well.

It is very hard to make other professionals outside the State of Florida understand that:

1. Most Cash Buyers are not looking for a bargain or trying to negotiate below asking price, on the contrary, they are aware of the great number of competitors and usually offer above last highest comparable sales.

2. Bank owned properties are selling above fair market sales, in South Florida REO "deals" are a thing of the past.
0 votes Thank Flag Link Tue Feb 19, 2013

It's different in FL.
It's the seller's market now around here.

The point was - in FHA - you should not overpay, as FHA appraisals tend to run lower than
conventional appraisals. This means they often come below the market area.
If this happens, the seller will either agree or disagree with the lower price (which most sellers won't in the rising price market), or the buyer has to come up with money out of pocket (this normally would not work for an FHA buyer). That's why many FHA deals don't pen out.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Tue Feb 19, 2013
Not an issue. Offer what you think the property is worth to you. To find out what it should sell for ask your agent for recent comparable sales information.
0 votes Thank Flag Link Fri Jan 4, 2013
Irina; I disagree:
From what I've seen in the last year or so; most CASH buyers are also LOW-BALL buyers.
They believe that thei CASH will get preferential treatment.

If you were selling, would you accept a lower offer just because it was CASH?

Even if they were equal, the benefit usually goes to the Buyer with the STRONGER offer, and CASH is only one consideration.
0 votes Thank Flag Link Fri Jan 4, 2013
Hello Liliana,

If you mean, you are competing with someone who is buying cash? - Then the answer is yes,
but within reason. You can't overpay - because to get an FHA loan, the property will be appraised, and the appraisal value has to match your purchase price. If the appraisal value comes back lower, then you either pay on top to get to the purchase price (optional), or you can get out of the deal (this has to be done the right way though).

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Fri Jan 4, 2013
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Tue Oct 30, 2012
Hola Liliana, siempre debes ofertar lo que realmente consideres que vale la casa y tambien tomando en cuenta el valor de mercado que tiene esa casa, para el prestamo. Por ejemplo la casa la venden en 200.000 $ pero el appraiser del banco da $180.000 , es muy dificil que la puedas comprar con FHA por la diferencia que hay que debes pagar de tu bolsillo.
Por eso para ofertar lo mas importante es conocer realmente el valor del mercado de la propiedad que te gusta. Conozco un desarrollo nuevo en Miami, muy bien situado, donde hay townhouse desde 218.000 $ , alli aceptan el Fha , y no solo eso, contribuyen a los gastos de cierre hasta por $10.000. la comunidad tiene piscina, ginnasio, caminerias. Y vienen con garantia del constructor.Los colegios son excelentes.
Cualquier informacion adicional puedes llamarme al 786-597-9395.
Saludos y muchos exitos.
Eduardo Perez blanco
0 votes Thank Flag Link Tue Oct 30, 2012
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