Be aware, any seller accepting FHA or VA will be compelled to reduce their net proceeds from the sale by as much as 6%!!! That is a big, involuntary price reduction. This added to predictably low appraisals can put a seller in a bind AND, (very important) make your purchase offer less desirable.
Some homes listed for sale may have issues that will create obstacles with a VA or FHA appraisal. Some sellers are simply unwilling to dance to that tune.
However, as I pointed out earlier, this is often just a preference. If presented with a good offer and minimal contingencies. most buyers WILL consider FHA or VA financing unless the property is clearly unqualified.
Work with your real estate professional to create the best offer possible.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Chat real estate on: http://www.RealEstateMadeEZ.us
The easiest way for you to find the right home, is to find a Realtor who is familiar with the lending requirements of FHA and VA programs. Secondly, you need to find an experienced lender who knows FHA and VA like the back of their hand. Not all lenders so these loans everyday and will get tripped up by something. Experience counts with these loan programs and you need an experienced team to work together to navigate to a successful closing.
The VA, FHA lender that I work with is authorized to teach classes on these loan types and is excellent. If you would like to work with an experienced team, it would be my pleasure to help you find what you are looking for.
Owner / Broker
NMLS # 6395
Financing Kentucky One Home at a Time
And by the way the best way to tell if a home is qualified for FHA or VA financing to you have your Realtor go with you to look at the homes, he or she should be knowledgable enough to know what is required to obtain this type of financing.
Best of luck in your home search.
A Seller MAY have expenses up to $350 with either an FHA or a VA loan, due to costs not allowed to be paid by the Buyer, but I've never heard of up to a 6% hit for accepting either of these loans. And, I've never heard of the Seller being compelled to reduce their price. The offer will have any conditions or reductions of price written into it. The Seller can choose to accept, counter, or reject any offer. There are no charges that come after the contract is signed that the Seller is REQUIRED to accept.
The Seller should be happy to allow anyone with the ability to get a loan to come in and purchase their home. The Seller also does not choose what loan program a Buyer can or cannot use in purchasing their home.
Now, before anyone gets all upset saying "well, the Buyer can ask for Closing Cost assistance," that is true with any type of loan, regardless of whether or not the loan is backed by the Federal Government. Simple fact is, this information will be in the offer, as well.
I do not know what the appraisal issues may be in Florida, but here in Colorado, I have seen very limited appraisal problems recently, and those are typically with overzealous pricing of homes in a Seller's Market, which we have now.
Lastly, if a home has issues that may create a problem for either an FHA or a VA appraisal, then the Buyer needs to be aware of these issues. In all cases, if the appraisal finds problems, it has to do with the livability of the home, and the Buyer needs to be aware of this. Additionally, if the appraisal finds these issues, I'm sure the Seller knows about the problems, and he/she or the Agent should be disclosing these issues anyway. I'm not sure it has anything to do with dancing to a tune, it has to do with either fixing it or not.
Sorry if I come across harsh, but the truth is that we are here to give correct information to potential Buyers and Sellers, and incorrect information does not help anyone.
Your agent should be able to go through your list of 50 homes and verify they qualify for the financing you're trying to obtain. If you're not working with an agent, I'm happy to help!
I'm based out of Longmont, and do a lot of business in northern Colorado including Loveland & Ft Collins.
Best of luck to you, and if you choose to continue looking in Loveland or in Fort Collins, I would be happy to answer any questions you may have. Cheers!