Ted,

Like everyone else has stated there are no extra fees as for selling to an FHA client.
Many times as a seller you will CLEAR a larger sale price because the buyer cant negotiate as strong if they need cloosing cost credits. SO really FHA clients are a good thing for a seller.
The main number you should look at is the NET or the final amount you will clear from the sale.
I hope this is helpful.
If you have any other FHA or conventional questions please feel free to let me know.
Good luck on your sale...

Steve Smither
Ardain Mortgage
ssmither@ardain.com
847-942-5151

Hi, Ted. I'm not sure what fees you're referring to since FHA doesn't require seller to incur any borrower's fees, unless you agreed to it in the sales contract. Perhaps you meant your closing cost will be 2% of the purchase price?

FHA does require 3.5% down from buyers. Are you selling on your own?

Hi Ted,

The option is really yours as to whether you want to pay towards the closing costs or not. It may be in your interest not to rule out any negotiation options in the sale process though, because not too many buyers are able to come up with the downpayment and closing costs on a purchase in these hard times. What a lot of Sellers will do in such a case is to negotiate on the closing costs rather than reduce the sales price. I hope it all goes well for you, and sell that property, so you can move on to greater things.
Good luck.

good afternoon..as stated below......there are no extra fees when selling to an fha buyer...none!.....as the seller, you can pay up to 6% of the sales price of the home towards the buyer's closing costs and pre-paids....but it is your option, it's not manditory....if the buyer requests that you pay anything to help him/her fund the transaction, you can actually add that to the listing price to accomodate them.. .then it is just a matter of whether the home will appraise.....best regards....bob mcclure- success mortgage partners- plymouth, michigan.......

It sounds like you are selling it yourself without a Realtor. FHA is a great loan especially for first time buyers with only 3.5% down payment required.

Many times buyers ask for closing costs paid by the seller up to the allowable amount. If you are very well priced, meaning below your competition, you might suggest to the buyer to add the allowable closing cost to the offering price. The property will still have to appraise for the final sales price.

Talk with your real estate agent and learn about the requirements for fha, then market it. Some FHA lenders can close fast, get in touch with a mortgage broker that does FHA, and market it to them. Get your buyers pre-qualified through that broker.

Answer yes it is worth it if it can increase your pool of buyers, more buyers= higher sale price.

Ted,

Selling your house to any qualified buyer for a reasonable price including any fees you will incur is worth it.

FHA loans make up about 1/3 of all the loans in our area and you don't want to cut out any potential qualified buyers or you may not get any.

As far as I am aware, there are no additional fees for selling FHA unless you are required to make repairs as part of the contract you sign.

FHA loans can take longer to approve so if you are trying to do a quick close, don't necessarily count on that close date.

Hope your sale goes through successfully!

Eric Marcus ABR, CPA, CRS
Certified Negotiation Expert
ESM Realty
Your Real Friend in Chicago Real Estate
773-244-1110

Not a clear question, Ted. What extra fees? What's the 2% about? FHA now requires 3.5% downpayment, and they are stringent on buyer/borrower credit-worthiness. FHA doesn't REQUIRE you, the seller, to do anything. Only has rules about what the buyer/borrower can do.

Ask again more specifically, and we'll be here to help!

You don't pay anything extra as a Seller.

Just make sure that the Buyer is preapproved and that the mortgage company is a good one!

Best of Luck!