Contingency on mortgage rate

Asked by Bernadette, Maryland Wed Aug 29, 2012

I received an offer, has the basic contingencies (home inspection, appraisal contingency), except a contingency of a max. 30 year FHA loan rate of 3.5%, which means if the buyer cannot get a rate of 3.5% or lower, they can back out of the contract. Any advice on this contingency? I do have an agent , but would like to get more input from the other experts. thank you

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Jody Seibert, Agent, Bel Air, MD
Wed Aug 29, 2012
You will have a financing contingency on all but cash offers and the loan terms must be stated. More than likely, the Buyer qualifies for the loan amount at 3.5%, but may or may not at a higher rate due to debt/income ratios. What exactly are your concerns in regard to this contingency?
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