I would love some advice from some more experienced folks on the following situation: I have an off-market offer for a multifamily that I would like to sell. It's at what would be my asking price if I listed it, but it's an FHA loan. I would love to not have to list the property and put the tenants through showings, etc...especially with covid still being an issue. The property is in decent shape but it is a somewhat older property. How big of a pain is the FHA loan process in terms of inspections, things you have to fix prior to closing, etc. vs a conventional loan? Thanks in advance!
Real Estate Agent · Minneapolis, MN · Member since 2015 · 102 posts · 100 votes
4y
If the property is in good shape and it doesn't have any safety issues, then it should be fine. I have worked with many FHA buyers and I only had a problem with one property where the garage roof was in terrible condition and needed to be replaced.
Also, a couple of years ago, I had a listing where the seller accepted an FHA loan. He had an older home and had to fix a few things to close it, but it was all minor inexpensive things.
Real Estate Agent · Minneapolis, MN · Member since 2015 · 102 posts · 100 votes
4y
If the property is in good shape and it doesn't have any safety issues, then it should be fine. I have worked with many FHA buyers and I only had a problem with one property where the garage roof was in terrible condition and needed to be replaced.
Also, a couple of years ago, I had a listing where the seller accepted an FHA loan. He had an older home and had to fix a few things to close it, but it was all minor inexpensive things.
Rental Property Investor · Seattle, WA · Member since 2014 · 69 posts · 51 votes
4y
I'd always take conventional loans over FHA loans, but as others have said, you should feel comfortable accepting FHA. They'll generally only ask for things to get fixed that you need to fix anyway. If it was a conventional loan, they'd probably ask for the concession, so it's not saving you anything in the long run.
Another thing to consider is how urgently you need or want to sell. What is the worst case scenario, the deal falls through and you waste a couple months? You still have the property and the rents. You can still list it. If that wouldn’t be too much of an inconvenience to you then go for it.
@Larry Turowski Yeah that is kind of how I look at it. I really don't need to sell it immediately. The tenants are nice and it is cash flowing. I was just hoping to sell it before it starts snowing because plowing can be a pain and fewer people come out to look at houses in crappy weather...and who knows where the market is going right now. The convenience of having it be done with, at my asking price, is pretty nice.