Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Longer process for these types of buyers. There is a big seller bias against them in my market and they often miss out when there is a multiple bid situation.
The bias may not be justified. Sold a property to an FHA buyer earlier this year & they closed in 3 weeks. No repairs required & no bull. Very easy deal. Doesn't have to be a hairball if the buyer's lender knows what they're doing, same as conventional.
No problem with these kinds of loans on a property that is up to code on the things they focus on. In a clean liveable place, the usual flag items are nickel and dime issues that aren't hard to fix. Must have smoke and CO detectors, straps on the water heater, and no peeling paint. Stuff like that.
In my experience as an appraiser, the biggest hold up can be the appraisal for the reason that the realtor is not familiar with FHA/VA Minimum Property Requirements. To have peeling paint fixed, a raining put around a deck/porch or a hand rail added to steps can take time. So if these issues can be taken care of before the appraiser even gets there, it will speed things up considerably.
We have purchased with a VA loan 2 times. The process was no different than when we purchased using a conventional loan. The biggest issue we heard from sellers when we were buying here in south Florida is that a VA appraisal will "stick" to the house for 6 months in the VA database. This would only affect VA buyers though so I don't get the reluctance to sell to us.
If you don't accept an FHA/VA approved buyer you will be cutting out a lot of buyers. I think it would be to your advantage to accept them. Since it's a condo, there should not be any "big" issues that would not be accepted by their terms. A SFH would be a different story.
If you don't accept an FHA/VA approved buyer you will be cutting out a lot of buyers. I think it would be to your advantage to accept them. Since it's a condo, there should not be any "big" issues that would not be accepted by their terms. A SFH would be a different story.
It's really market dependent. You can list it as a FHA/VA approved listing, but have no intentions of accepting one, unless they are well above a cash/conventional buyer.
The house I bought, I wasn't the highest offer. There were two FHA loans that were 2-3k above mine. But I was conventional, with 20% down with a 30 day closing date. They said at the closing table that working with us was so much more enjoyable than their last house they sold to an FHA which kept running into issues with either the mortgage, inspection, etc.
At one time, I owned a condo. Condominium communities have to be approved to accept FHA and VA loans and they are two separate approvals. If you want to know if a particular condominium association is approved, you can look online. FHA has to be periodically renewed. Some condominium communities aren't impacted by not having FHA or VA approval. This can be due to geography, local desirability for condos, and location. However, some communities feel the impact in a massive way. If you are in an area where the condos are strongly attracting first time home buyers, the lack of FHA approval could be awful. Before buying a condo, check to see if your condo is both FHA and VA approved. If they aren't, check to see how long condos are on the market. If they have been on the market for months, this is likely a contributing factor to the reason.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
