I really like a house but the seller does not want to accept FHA.

Asked by Sh, 91320 Sat May 22, 2010

I really liked a house but the seller is strongly against FHA loans, even though I am offering very close to his asking price, have agreed that if there are any repairs needed I will do them. I dont understand why.
Is there any other loan which would give me similar options as FHA? Low down payment (upto 5%) and low interest (3.6%)?

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7
Scott Godzyk, Agent, Manchester, NH
Sat May 22, 2010
BEST ANSWER
If a seller wont take FHA it is usually that the house wont quailify for fha financing. Check teh sellers property information report and ask alot of questions. Look with your own eye or have your buyer broker or someone you know who is expereinced with home inspecting and look for potential problems with your naked eye. No seller who wants to or needs to sell would not consider an offer from any buyer, even if getting a fha loan unless there was a reason. You can also try and ask them point blank, why wont you take an fha loan and has teh house failed an fha inspection or appraisal? good luck working thing sout
Web Reference:  http://www.ScottSellsNH.com
1 vote
James Gordon…, Agent, Hamilton, OH
Sat May 22, 2010
If the seller will not take a FHA loan at all why not be your own "flipper"? I have some clients buying a home with no kitchen or bath with a FHA 203k. New maple cabinets with granite counters in the kitchen, 2 new garage doors, 15 new energy efficient windows, new bathroom remodel, whole home scrapped and painted on the exterior. All this repair work for a contract of 21,000.00. The flipper could be worried about FHA time line, the need for a second appraisal, and FHA limiting the net profit on a flip.
1 vote
Steve, , Rohnert Park, CA
Sat May 22, 2010
Seller could be worried his flip won't appraise out - assuming we're not talking a 2mil+ home, $125K increase is a pretty big leap for a bunch of HGTV projects. Frankly, some amateur flipper trying to distance himself from repairs seems a little suspicious as well.

If the roof is bad, or there are structural issues -- I don't think FHA will do the loan even if you agree to repairs. Perhaps the seller knows something.

I'd tread carefully, probably just walk away. A flipper scared of an FHA inspection sounds dangerous.
1 vote
James Gordon…, Agent, Hamilton, OH
Sat May 22, 2010
Sh what does you Realtor® say? I would present the offer and let the sellers agent know that the only way you can purchase in the current lending environment is with the FHA product. The agent once they have an offer to present to the seller may be able to get them to see the light and sell the home to you.
1 vote
Darla Dennis, Agent, Camarillo, CA
Tue Jun 7, 2011
Hello Sh,
Sometimes Seller's will get offended by a lower offer. I do agree with what has been stated. If you really want the house, make another offer, contingent on all your inspections. They may not want an FHA because they don't understand. Usually the only reason they would say no would be that they know it will not pass FHA guidelines. We have a Great Buyer's market. Keep looking while you investigate this further. Bottom line, is the Seller has the right to refuse an offer at anytime. "sometimes a white dog is just white-no reason or rhyme"
Web Reference:  http://www.homesbydarla.com
0 votes
Sh, Home Buyer, 91320
Sat May 22, 2010
James, I send a slightly less than asking price as an offer first to which seller refused sayinbg the offer is too low and he is not sure abt FHA loan and also said if there would be any repairs the buyer would be responsible. Our realtor was a bit offended by that but since we were really interested we sent in another offer very close to their asking price and also agreed for the repairs (the house has been updated, the seller bought it in feb flipped it and is asking $125K over his buying price, so we thought since it has been updated there shouldn't be any or many issues with it and if there was something seriously wrong that came out in inspection we can back out in the 17 days)

But now the seller told his agent who replied to our Realtor by saying the seller as said no FHA so refuse the offer.
The house has been on the market for 29 days they don't have any other offers, don't know what is sellers problem.

Is there any other loan which can be similar to FHA? low down payment low interest rate for 5yr arm?
0 votes
Sh, Home Buyer, 91320
Sat May 22, 2010
This interest rate with 5yr arm.
0 votes
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