Home Buying in Los Angeles>Question Details

Lisa, Home Buyer in California

What does FHA require of a seller if the contract is contingent on FHA financing?

Asked by Lisa, California Mon Feb 2, 2009

"If this contract is contingent upon FHA financing, seller shall pay for the following inspection reports required as a part of FHA". I am interested in purchasing income property and to occupy it.

Help the community by answering this question:


The seller is required to provide a habitable home, heater, water heater (braced), termite OK, closing costs paid by seller. Your lender should be able to answer this better.
Web Reference: http://www.bennychavez.com
0 votes Thank Flag Link Sat Feb 7, 2009
Hello Lisa,

Bob below is mentioning fees to the seller. They have changed this since FHA's were popular back in the 1990s. For a while we forgot they existed. Check with your agent in case there is something that I don't know about the contract. The FHA is similar to a regular loan now. There will be an appraiser and he may require some repairs that FHA may require to meet their guidlines. For example I had a property that didn't have bar release in the bedroom. The seller was more than happy to fix these items to get the house sold.
So to answer your question, I don't see seller's paying for extra inspection reports anymore but if as a result of the appraisal their may be some work/fixes that need to be done around the house to satisfy the FHA guidlines.


Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
0 votes Thank Flag Link Tue Feb 3, 2009

FHA loans typically do not allow the Buyer to pay some of the costs of the transaction and may include fees charged by third parties such as escrow, title, settlement and lender fees. These fees are also termed as "non-allowable fees" to the Buyer. What this does is puts additional costs on the seller thus making the seller more inflexible to adjustments in the sale price.

When you buy a home with an FHA loan you must understand what the extra costs are going to be for the seller as compared to a buyer with a non-FHA loan. Your Realtor must be knowledgeable in this area and will advise you accordingly.

Bob Khalsa
Broker Owner
United America Realty
0 votes Thank Flag Link Tue Feb 3, 2009
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