There are a variety of reasons that a home can be designated as ineligible for an FHA loan. You can check out some of the requirements at the web site below. The fact that you have come to a sales agreement with the seller of the home does not matter to the FHA appraiser. Once an FHA appraiser has determined that the property is not eligible for FHA financing, you will need to determine if the property can be repaired to meet FHA requirements or if the property is not in a classification to be allowed for FHA financing. If your credit is good, you can talk to you lender to see if you can qualify for conventional financing in order to consumate the sale of the home.

Your best plan is to get a solid lender who can advise you on your options and help you devise a plan.

Good Luck!

Mark Carlisle
The Mega Agent Real Estate Team - Keller Williams Realty
Birmingham, Alabama