Home Buying in West Hartford>Question Details

Ash, Home Buyer in West Hartford, CT

can a seller refuse to sell based on the byuers loan type i.e. FHA or CHFA

Asked by Ash, West Hartford, CT Mon Jun 28, 2010

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Why would a seller refuse to sell based on the buyer's loan type? The best reason for this is a home which is in very tough condition. Often bank foreclosure homes are offered for sale with the condition that conventional financing will not be acceptable. However, some people don't understand that FHA financing accounts for a huge percentage of the loans obtained by first-time buyers.

Your agent (representing you as a seller or buyer) should be familiar with the mortgage guidelines and be able to advise you how you could make FHA or CHFA work for you!
2 votes Thank Flag Link Fri Sep 24, 2010
They can refuse to sell for any reason. Did you offer full price?
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0 votes Thank Flag Link Sat Mar 31, 2012
Yes, seller can refuse the loan type that the buyer is applying for.
There may be alternative financing that your agent or mortgage
officer can tell you about ..conventional is always an easy
way to go.

You may have another person to go on the deed with you
you, you may be able to have a gift of money to be able
to go conventional and there may be other alternatives
if you really love the house.

Anne Miller
0 votes Thank Flag Link Sat Mar 31, 2012
I agree with Brent.

I wanted to add: If you get an offer close to your listing price and have a pre approval from a reputable lender with no other offers on the table, there should be no reason to even consider turning the offer away due to the type of financing. I could see if it wouldn't pass an FHA appraisal or has other problems like lead paint, termite damage, etc. that might throw a wrench in the works.

Good Luck!

0 votes Thank Flag Link Mon Nov 1, 2010
Absolutely you can turn down an offer due to concerns about financing. If your house is in fairly good condition, however, I would think twice before letting go of a willing buyer. There is definately more risk in the sale but you may WANT to work with this buyer. I have insisted, for example, that the buyer be pre qualified by one of my trusted mortgage professionals. There are many FHA loans that close just fine. Just do your due diligence.
0 votes Thank Flag Link Tue Jun 29, 2010
A seller has to right to turn down an offer to many reasons and the type of financing is one of them. Talk to your mortgage broker and realtor about the possible programs that you qualify for and maybe there is one the seller is willing to accept.
0 votes Thank Flag Link Tue Jun 29, 2010
A seller is interested in the strongest offer they can get, price is not the only factor. An FHA loan with only 3.5% down may not be as strong as an offer with conventional financing with 20% down even at the same price. FHA/VA may also have some expenses to the seller that conventional financing does not.
0 votes Thank Flag Link Tue Jun 29, 2010
Yes. A seller is not obligated to accept an offer and the buyer's type of financing is just one factor to be considered when ecaluating an offer.
0 votes Thank Flag Link Mon Jun 28, 2010
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