Updated about 6 years ago on . Most recent reply
Why would a seller not accept an FHA loan?
Why would a sellers not accept an FHA loan and would rather do a conventional loan even though the property has a solid feel of passing the inspection?
Most Popular Reply
The FHA loan has an inspection and appraisal requirement. If the house fails either then it sticks with the property for 6 months. So that means that if it comes back 10K less than agreed on price or FHA says fix the roof, the seller is in a bind. FHA loans also speak to the purchasing power of the buyer. So a buyer that qualifies for a conventional or all cash etc has stronger odds of making it to the closing table.
It just speaks to the strength of the offer.
- Mike Cumbie