If the seller Deutsche Bank isn't going to write the mortgage why do they care whether a buyer has a FHA or conventional loan?

Asked by Brighteyesblue, 32806 Fri Jun 1, 2012

1102 S Conway Road 32812

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5
Sylvia Paul, Agent, Apopka, FL
Fri Jun 1, 2012
Each loan has its own guidlines and requirements, FHA being one of the strictest in regards to the condition of the home.

If the condition of the home does not meet the FHA guidlines, your lender will not grant you an FHA loan on the home.

As with any seller, banks, want to go to contract with the buyer most likely to close the transaction. If the home does not meet FHA requirements it would be a colossal waste of time for all involved
to go forward.

A conventional loan is a little less strict because it has a much higher downpayment requirement
so the risk to the bank is less.

Believe me, 'there is a method and a justification to all the madness'.

Hope this helps, and if I can be of further assistance, just pick up the phone and give me a call.

Sylvia Paul
Realty Center
(407) 864-3139
1 vote
Maria Gilda…, Agent, Manchester, CT
Fri Jun 1, 2012
Hi Brighteyesblue,

If the seller believes that the property can't pass FHA guidelines, they would care about the type of loan you are going to apply for.

Normally, FHA has tighter restrictions than a conventional loan.

I hope this helps.
0 votes
Linda Jokben…, Agent, Orlando, FL
Fri Jun 1, 2012
Different loans also have different time lines for processing and closing, which could make a difference between your offer and someone else's.
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Fri Jun 1, 2012
I know exactly why.

and know exactly what to do.

email me and I'll advise
0 votes
Alys Esmond, , Orlando, FL
Fri Jun 1, 2012
The home may not qualify for an FHA loan, so if the buyer is qualified for FHA only, they will not be able to purchase the home.
0 votes
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