Home Buying in Miami>Question Details

Tatiana Capi…, Home Buyer in Miami, FL

How to find sellers that will accept FHA financing?

Asked by Tatiana Capitan, Miami, FL Thu Aug 15, 2013

I'm currently looking for homes but am not having much luck since apparently a lot of sellers won't accept FHA financing...and it's stressing me out!

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New home builders often accept FHA loans. In the general marketplace, however, it's getting harder to find home sellers who will accept FHA loans.

That's because there are so many cash buyers looking for homes in the typical
FHA price ranges. Then, there are conventional loans also lining up for a short at the limited number of homes currently available for sale.

Many homes are selling above their appraisal rates. So sellers are often reluctant to accept an FHA mortgage because they are aware that their homes will not appraise; they are also aware that most FHA buyers will not have sufficient cash reserves to pay the difference between the appraisal valuation and the agreed upon sale price.

Marc Jablon, the Jablon Team
RE/MAX Complete Solutions
JablonTeam@gmail.com
561-213-6139
http://www.JablonTeam.com
1 vote Thank Flag Link Fri Aug 16, 2013
To those agents out of State questioning the non acceptance of FHA loans, Miami is flooded with cash investors, many of which are willing to pay the fair market value of the property and sometimes even more. When Sellers are presented with the offers guess who the winner will be 99% of the time?
1 vote Thank Flag Link Fri Aug 16, 2013
This also depends on the area you are looking in, but if the house is in poor condition, has been on the market for a long time - FHA financing is possible still.

An alternative option is Homepath.com (Fannie Mae) foreclosure purchase with Homepath financing.
You can put as little as 3% down, and in some cases the lender will pay the closing costs.
Since you are buying your principal residence - you'll advantage over other buyers like investors, for example, if you offer during Homepath's First Look Time Period. There is a similar program called Homesteps (by Freddie Mac).

Check it out on their website!

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Fri Aug 16, 2013
Tatiana.... like Marc and Yanoska, I will also suggest you stop trying to outcompete the cash buyers. Yes, you will pay a premium for new construction, however, you will actually be able to buy a home, saving you much more over time. I know of one community just north of Doral where you can buy starting at about $230,000 for a two bedroom villa. There's no information available to the public quite yet, but if you send me an email, I'll make sure you get a copy as soon as it becomes avialable.

Ann Ryan
786-332-7042
AnnRyan@Keyes.com
0 votes Thank Flag Link Fri Aug 16, 2013
Even in Doral, the new construction is a better choice than used properties for sale. The incentives are huge!
Flag Sat Aug 17, 2013
Hi Tatiana, Marc Jablon has it exactly right. I am a direct lender with an A+ rating on the Better Business Bureau and come highly recommended. If I can be of any assistance just let me know.

All the best,

Fritz Walter
VP of Retail Sales
Toll free: 800-359-1996 x551
Direct: 203-783-4551
Email: fwalter@totalmortgage.com
Alt email: fritz@post.Harvard.edu
NMLS ID: 387922
Visit my webpage: http://www.totalmortgage.com/bankers/fritz-walter/
Company Website: http://www.totalmortgage.com
Total Mortgage Services, LLC - NMLS #2764
Licensed in: CT, FL, MD, NJ, NC, SC, TX, VA
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Total Mortgage offers a complete selection of mortgage programs including:
Conventional, FHA, FHA 580-639 FICO, FHA 203 Renovation (Streamline & Consultant), HomePath, VA, VA IRRL, USDA, Jumbo financing , and No Income or reduced income. Portfolio, jumbo, and conventional programs offered for self-employed borrowers as well.
0 votes Thank Flag Link Fri Aug 16, 2013
Thanks Marc...terrific answer!
0 votes Thank Flag Link Fri Aug 16, 2013
Have you shared this with your Realtor? There are specific options in the MLS to designate whether a property is eligible for FHA.
0 votes Thank Flag Link Thu Aug 15, 2013
This is interesting. What are some of the reasons you've been given by the sellers as to why they will not accept FHA financing? Thanks.
0 votes Thank Flag Link Thu Aug 15, 2013
I do FHA deal all of the time. The fact that they won't accept them makes me think they are not fully educated on them. Their agents should be guiding them accordingly.

Chris
0 votes Thank Flag Link Thu Aug 15, 2013
I've only seen about 5 homes so far and only two we'd even consider and our realtor said he'd get back to us on those homes, which was well over a month ago. When I asked him about the properties he'd shown us and other's that I'd seen on Realtor.com and asked him to show us, he said it's not a matter or showing us the homes, the problem was finding a home that would be approved by FHA (understandable, since the homes we'd seen were foreclosures and needed some repairs) or a seller who would accept FHA. I believe the sellers in this case are banks, Fannie Mae, etc.
Flag Fri Aug 16, 2013
New construction, don't stress yourself a minute longer. Email me for great incentives on financing a new construction through the FHA program.
0 votes Thank Flag Link Thu Aug 15, 2013
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