Fha buyer came in at 285k 3.5 percent down and the lady really wants the house from what her real estate agent told us. Second offer is at 289k conventional loan. My broker advised me to take the FHA as she's a more "serious" buyer which does not make any sense to me.
Real Estate Agent · Youngtown Ohio · Member since 2019 · 66 posts · 46 votes
3y
More of a serious buyer? How do they know have they met the buyers personally? Did they make a offer just for fun? Are they both asking for an inspection? what are the terms of the inspections. Is one lender better than the other? Lots to consider but id usually take a conventional loan for more money over fha
Investor · Member since 2022 · 111 posts · 150 votes
3y
The only thing I can think of is your agent maybe thinks the second offer may back out? And the FHA seems determined to close. I would ask more about what he means.
When I sold a place a similar situation occurred. The FHA loan required an FHA inspection and I was concerned they would flag a few issues so I went with the conventional loan buyer.
Is the buyer with the FHA loan represented by an agent in the same company or a friend of the agent. There can be a conflict of interest in such situations. Ask your agent to substantiate the reason the conventional loan buyer does not seem serious.
Real Estate Agent · Youngtown Ohio · Member since 2019 · 66 posts · 46 votes
3y
More of a serious buyer? How do they know have they met the buyers personally? Did they make a offer just for fun? Are they both asking for an inspection? what are the terms of the inspections. Is one lender better than the other? Lots to consider but id usually take a conventional loan for more money over fha
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
3y
Well, looks like the OP has left the chat. While fha is generally seen as shakier, this is due to someone who supposedly can’t qualify for conventional and/or is short on cash, which can cause issues if they are not aware of the 5-6% closing costs and prepaids.
There is nothing wrong with asking for evidence of sufficient cash to close from any financed buyers.