"Terms" listed in MLS (conventional, FHA, VA, etc) (agent, mortgages)

[christiner81]

Do those really mean anything? We will probably be using an FHA loan and have seen where some listings only say "Terms: Cash or Conventional." Can they really control that...or is it a preference? Not talking about fixers that wouldn't qualify for FHA type loans.

[cully]

Actually FHA203k is great for fixers.

Some ideas kicking around are that a loan with a higher down payment reflects a better buyer; FHA and VA loans require more in the line of health and safety regarding the condition of the house; those last two can take longer to close.

The property may not be FHA or VA approved.

If you're purchasing a condo, last I heard FHA has restrictions on rentals to owner occupied units and percentage of units that can be owned by one person. And percentage of units that may be more than 60 days past due on association dues. And whether there are short term rentals in the compex.

It would be a good idea to find out the reason the sellers prefer conventional as a way to inform yourself on the issues in place in the property your purchasing which you may yourself like or not like.

[MikeJaquish]

Originally Posted by christiner81

Do those really mean anything? We will probably be using an FHA loan and have seen where some listings only say "Terms: Cash or Conventional." Can they really control that...or is it a preference? Not talking about fixers that wouldn't qualify for FHA type loans.

Yes, they can dictate what they consider acceptable terms of sale, including accepting or rejecting your financing choices.

And you can ignore that, or request clarification from them.

[Tish Thompson]

Originally Posted by christiner81

Do those really mean anything? We will probably be using an FHA loan and have seen where some listings only say "Terms: Cash or Conventional." Can they really control that...or is it a preference? Not talking about fixers that wouldn't qualify for FHA type loans.

Yes it really means something and yes "they" can control that. There are reasons why a property would only qualify for certain types of financing, which is why you see this in some listings.

[NilaJones]

I would guess that, for a certain percentage of listings that say 'Cash or conventional', the ad was written by someone who thinks those two terms cover everything -- and what they meant to say was, 'Cash or financing'.

[dontaskwhy]

I have seen MLS listings that say "Cash, no financing" when the home will not qualify for financing. Examples would include a home that was never completed or under major renovations, known sinkholes, in an HOA with lack of proper reserves or in a flood plain (to mention a few).

[NinaN]

I would call the listing agent and ask. Usually it's just because they didn't know whether it would qualify for FHA, VA etc. so just didn't put it in the listing. Sellers prefer cash or conventional because it's less likely to fall through due to financing, but that doesn't mean they won't take other types of mortgages if necessary.

[Lacerta]

In my area, it means those are the types of financing that are acceptable to the seller under the offered terms. Other financing might be accepted under different terms. For example, in my area, VA loans cost the seller more money, as the VA doesn't allow the buyer to pay some typical buyer costs and the seller has to pick them up. So if the listing was offered at $125k with cash or conventional, they might take a VA offer at $126k.