Home Selling in 19119>Question Details

EmmaMio, Both Buyer and Seller in Yonkers, NY

Hi, I am selling by owner, and wanted to know if I can get my home "FHA loan approved". How would I do this and is it worthwhile to do so?

Asked by EmmaMio, Yonkers, NY Thu May 26, 2011

Help the community by answering this question:

Answers

7
BEST ANSWER
I wouldn't. The FHA is a lending option that will be decided by the Buyer. If he/she elects to utilize another financing vehicle, then you have just wasted money. What will happen is if the Buyer is utilizing an FHA backed mortgage to secure the property, an Appraisal will be completed with the FHA requirements in mind. The appraiser may note certain items which need correction prior to the closing being able to take place. Different Appraisers, different requirements. Different loan types, different requirements. There are just too many unknowns at this point and I would rather see you budget funds to correct any potential requirements that arise, instead of making corrections only to be told that you have to complete others. And, most of the time, the requirements will coorespond to what is found in a home inspection, so you may be presented with the requirement anyway. But if that is the case, you are satisfying two issues (inspector and appraiser) while only paying for the one correction.


Best of luck.
0 votes Thank Flag Link Thu May 26, 2011
Hello Erica,
Are you absolutely sure you want to do that? Lets say you decide to get the appraisal and inspection($800-$1000) done, but the buyer gets a different financing! For sure an appraisal is great so you can price your home right. And an inspection to see if there are any defects with the house. But remember once you are aware of these defects, you need to disclose them to all the buyers that will come to see your home,assuming you are marketing your home, or just put more money in it so you could get the repairs done.
Now all the buyers is thinking is about that appraisal you got to FHA ( loans guaranteed and secured by the government ) approved your home. In conclusion, you have spend more money beside the $1000, but your home hasn't sold . Get a home selling specialist, it will save you money,time, and aggravation.
0 votes Thank Flag Link Wed Jun 1, 2011
Hi Erika: FHA is a loan that the buyer is to secure. The reason for an FHA loan is possibly a low down payment. A lot of lenders have similar programs. One of the answers below is right on target. from Mr Simms, Louisville, Ky wherein he applauds your marketing approach. You cannot make the statement that your home is FHA loan approved without an appraiser certifying that. Your zip of 19119 indicates Germantown. You can look up the sales in Realtor.com to see what the homes are selling for. Also, make sure you have no liens that will come as a surprise when settlement is pending. Look into this now, so you can either settle or resolve it in a timely manner. If you wait until the contract is signed and the title company finds these concerns, you will most likely have to pay more to remove them. Also, spruce up the home so you can get the best price. Curb appeal is very important to get the buyers to come in and see more. I know that you are trying to save money by doing it yourself and that's fair. I have listed and sold homes in your area with good success. Let me know if you want me to help you. Lastly, lots of luck, you can do it.
0 votes Thank Flag Link Thu May 26, 2011
Erika,
Please give me a call and I can answer all your questions.

Yve Banks
RE/MAX Specialists
267-975-0372
0 votes Thank Flag Link Thu May 26, 2011
FHA doesn’t approve homes, they don’t even approve buyers. If you are trying to use low down payment as a marketing tool that is a good move, I use it when I help Realtors with their marketing. As long as your home is below the level for maximum FHA financing in your area you can do that. Any advertising that refers to financing may require RESPA disclosures depending on the words used in the marketing piece. Since you are not using a Realtor a lender may help you with the required disclosures, ask the lender you are using for your next loan. If you are buying another home after selling this one you should already have been pre-approved before putting the existing home up for sale. The Realtors that refer their clients to me average a 4.5% higher price than true FSBO's which means their sellers net more than FSBO's that pay a co-opt agent with a buyer. (as far as I can tell) The stats on FSBO's are not easy to get to in my area but I try to track them. In 20 years the number of closings I have attended (thousands) can count one one hand the number that did not have at least one Realtor in the room. Good luck but if it doesn't work out for you find a good Realtor, I am not one and am not in your area so have no reason to make this suggestion except to be helpful.
0 votes Thank Flag Link Thu May 26, 2011
The FHA approval comes when the home is appraised by the bank forthe buyer. You can always have an appraiser come out now and look it over for that. It would cost you about $300-$400 to do this. You may also want to think about having a home inspector giving you a report now, so you know what to expect when the buyer inspects it. That will also be about $400. If you have no success in selling it yourself, please feel free to contact me for assistance. Andy Brown 215-779-2674.
0 votes Thank Flag Link Thu May 26, 2011
Hi Erika,
Probably not as you might spend money unnecessarily and then find a non-FHA buyer. If you'd like to discuss more please give me a call at 267-269-6288. Best of luck! Emily
0 votes Thank Flag Link Thu May 26, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer