Home Buying in Los Angeles>Question Details

Lisa, Home Buyer in California

What does it mean when a home is not qualified for FHA financing.?

Asked by Lisa, California Fri Nov 28, 2008

I am approved for a FHA loan. Some of the homes that I have been interested in will not accept FHA financing.

Help the community by answering this question:


You need to get approved for the right type of FHA financing to purchase and repair these types of properties which then the seller will accept.

If your interested in pursuing that feel free to contact me and good luck to you.
0 votes Thank Flag Link Fri Nov 28, 2008
Lisa, I am speculating here but I imagine you are looking at bank owned homes. Many of these homes are not in FHA condition. In my market the number one thing I see that makes things not FHA qualified is flooring. Often missing carpet or flooring makes things unfinancible for FHA financing.
It is in your best interest that you find a home within the parameters of FHA as these appraisers are much thorough in order to make sure you are getting a good home to help protect you and their interests.

Hope this helps. Best Wishes and Happy Holidays!
0 votes Thank Flag Link Fri Nov 28, 2008

There could be a number of reasons for this.

1. An agent or seller may choose not to accept this type of financing on a home because they anticipate a problem with an FHA appraisal - they generally aren't as leanient as conventional appraisers.

2. Common Interest Communities (Condos - Cooperatives - townhouses) associations must be approved by FHA in order for them to lend money in that development. Spot approvals can and do happen all of them time though.

The best advice I can give you is to have your agent call the listing agent and ask them why they aren't accepting FHA financing - sometimes its just a mistake.

Cameron Piper
Web Reference: http://www.campiper.com
0 votes Thank Flag Link Fri Nov 28, 2008
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