FHA Offer; What comes to mind when

Asked by Ben Teal, Dallas, TX Tue Dec 28, 2010

Listing Agents, what's the first thing that comes to mind when you receive an FHA financed offer on your property?

Help the community by answering this question:

+ web reference
Web reference:


Patrick Thies’ answer
Patrick Thies, Agent, Anytown, IL
Wed Dec 29, 2010
In the past, many sellers would tend to shy away from FHA offers. That is no longer the case. Many loans today are FHA and go very smoothly. Sellers shouldn't be afraid to entertain FHA offers.
0 votes
Dallas Texas, Agent, Dallas, TN
Wed Dec 29, 2010
Simple nothing majority of loans are FHA

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes
Shel-lee Dav…, Agent, Rolling Hills Estates, CA
Wed Dec 29, 2010
Mr Teal:

My first thought is "owner occupied". And there is nothing better for our current market then to fill neighborhoods with people who want to live there, take care of their homes, and be good neighbors.

My second thought goes to the property itself. I do a lot of short sales. So it is imperative to evaluate if the property has problems that will prevent FHA from lending on it. In a short sale, the seller can't fix the problems because they have no money. And, unfortunately, the short sale lender, who is already taking less than what is owed to them, will not pay for the needed repairs. A good listing agent will know if their property is FHA financeable and should disclose if it is not.

Good luck in finding your new home. And as you can see from the answers below, being an FHA buyer is not a problem in this market. Dare to Dream.

Shel-lee Davis, QSC®
Certified Distressed Property Expert – CDPE®
Short Sale & Foreclosure Resource – SFR®
Certified HAFA Specialist – CHS®
SSG Pro®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
424-2HELP12 (424-243-5712)
0 votes
James Gordon…, Agent, Hamilton, OH
Wed Dec 29, 2010
Thank God!
0 votes
Katrina Roth, Agent, Valencia, CA
Wed Dec 29, 2010
Mr. Teal,

That's such a good question and maybe too difficult to deliver a direct answer. Each situation is different. I'll start by confirming the fact that the driving force for many of our local markets are supported by mostly FHA buyers and it's difficult to find prejudice in working with these transactions. My first concern would be to make sure that there aren't any challenges that would prohibit a lender from lending on the property. I have learned from experience the importance of requesting that my sellers perform certain inspections to uncover any major issues prior to even taking the listing. Another important concern is that FHA loans are increasingly becoming harder to qualify for. Buyers have to make sure they're confident with their finances, down payment resources, Fico score and overall credit history. Yes, a DU approval should be obtained by your lender prior to setting out to search for properties. Be prepared for success! The most powerful tool of all: Work with an experienced loan originator, preferrably one who understands what their underwriter will approve before they submit the file to their processor. Here's one last tip to gain leverage with the listing agent: It might a great idea to agree to use the listing agents lender of choice. This may incentivize the seller to feel more confident in accepting your offer.

If you need a list of referrals, please do not hesitate to contact me at anytime.

Best Wishes & Good Luck!

Katrina Roth, REALTOR
Keller Williams VIP Properties
25124 Springfield Court, Suite 100
Valencia, CA 91355
Direct (661) 208-1855
Fax (661) 291-1463

*Serving All Of Your Real Estate Needs Throughout Southern California...
0 votes
Melissa Krch…, , Rancho Cucamonga, CA
Tue Dec 28, 2010
FHA is "the" loan right now. An agent that doesn't seriously consider an FHA offer, is doing themselves a disservice. If you offer to get cross-qualified, that might help a hesitant Agent.
0 votes
Shirley Bell, Agent, Adelanto, CA
Tue Dec 28, 2010
What comes to my mine is,this is a buyer that is lookiing for a home for their family to live in and maybe not an investor who will buy to rent out later. I will do whatever ti takes to help make it happen. Providing that the offer is a good offer and the buyer in not going to make a low offer. Cash, Conventional buyer will be your competion, I would give a FHA BUYER a chance. to make it happen. DU approved is the way to go.
0 votes
Lori Duran, Agent, Mission Viejo, CA
Tue Dec 28, 2010
Owner occupied buyer, maybe first time buyer, will my listing pass FHA inspection? Do they have loan approval or just a pre-qualification letter?
Web Reference:  http://www.loriduran.com
0 votes
Emily Knell, Agent, Huntington Beach, CA
Tue Dec 28, 2010
So long as I get the buyer to cross qualify with a direct lender (if they submit an approval letter from XYZ mortg. broker) and they check out, also with a stmt showing Proof of Funds, an FHA buyer is just as good as any other buyer. It depends on who the seller is too & of course which offer to accept is up to the seller.

On short sales, I like FHA buyers, they know how tough it is out there bidding on REO properties & their slim chances of winning the bid. So, on a short sale, I personally feel more confident that the FHA buyer is going to stick it out vs. an all cash buyer.

I have a condo for $124,900 for you in an FHA approved neighborhood in Covina, short sale, great deal!

562-430-3053 cell
Realtor Since 1996
0 votes
Jimmy Esqueda, Agent, West Covina, CA
Tue Dec 28, 2010
How many years experience the buyer's loan officer has doing FHA loans.
0 votes
Daniel Rangel, , Marina del Rey, CA
Tue Dec 28, 2010
I agree depends on the condition of the property.. But Also on the other terms of the contract....credit score..closing costs...termite...contingencies..n much more...if ur going FHA its about packaging the offer right..on bank owned properties find out if it goes home path
...that will help..
0 votes
Cricket Yee, Agent, Sherman Oaks, CA
Tue Dec 28, 2010
If your house is in good condition, I think, "GREAT, no problem!" If there are issues that you're worried about, I'd think, "Let the negotiating begin!"
0 votes
Search Advice
Ask our community a question
Home Buying in Pomona Zip Codes

Email me when…

Learn more