looking for home off the market
Would it be possible to buy a house off the market, without a realtor, with an FHA loan?
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#1 Foreclosures Contributor
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@Vivy Kaufman Yes, but you'd need to make sure the house condition qualifies for an FHA loan, execute a proper purchase agreement with 45 days or so to close, etc.
First step is to get pre approved with a lender for an FHA and seek their guidance for this along with a recommendation for a title company.
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@Vivy Kaufman welcome to BP! Possible probably. Is it for you? Most likely not recommended. You will have no idea if you are getting a deal or a dog unless you know how to underwrite. You won't know about disclosures, title transfers, laws.
I am not a realtor or a lender and have no iron in the fire, this does not have the makings of a positive outcome for you. All the best!
Quote from @Bjorn Ahlblad:
@Vivy Kaufman welcome to BP! Possible probably. Is it for you? Most likely not recommended. You will have no idea if you are getting a deal or a dog unless you know how to underwrite. You won't know about disclosures, title transfers, laws.
I am not a realtor or a lender and have no iron in the fire, this does not have the makings of a positive outcome for you. All the best!
Quote from @Bjorn Ahlblad:Thank you. I try to get other way because in the school area I want the houses costing 450+, I don't have a loan greater than 400k, so I'll only get the house in the area I want if it's off market. I don't see another solution. But my lender will also need to appraise the property.
@Vivy Kaufman welcome to BP! Possible probably. Is it for you? Most likely not recommended. You will have no idea if you are getting a deal or a dog unless you know how to underwrite. You won't know about disclosures, title transfers, laws.
I am not a realtor or a lender and have no iron in the fire, this does not have the makings of a positive outcome for you. All the best!
Quote from @Wayne Brooks:
@Vivy Kaufman Yes, but you'd need to make sure the house condition qualifies for an FHA loan, execute a proper purchase agreement with 45 days or so to close, etc.
First step is to get pre approved with a lender for an FHA and seek their guidance for this along with a recommendation for a title company.
Thank you for your answer. I'll need a lawyer to make this contract. Or how do I make this contract legitimate, preventing the seller from changing his mind.
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#1 Foreclosures Contributor
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@Vivy Kaufman An attorney would be good, to make sure you understand it, and you’ll need some advice on local customs (who pays what closing costs, title insurance, typical inspection timeline/contingency, financing contingency,etc) but you can likely get a contract from a title company. You can also google up your state realtor contract.
Quote from @Vivy Kaufman:
Would it be possible to buy a house off the market, without a realtor, with an FHA loan?
Hey Vivy, you definitely can. A closing attorney would be able to help you out and not every Realtor would charge a commission, they can act as a transaction broker and charge a flat fee for their services to fill out the paperwork. Your lender should be competent enough to explain the details of an FHA loan but you can always ask for advice here as well.
@Vivy Kaufman, it's possible, however, this is going to be very difficult to execute. Usually, homeowners sell off-market because they need a cash offer that can close quickly (1-2 weeks). Unfortunately, financing via FHA is not reassuring to the seller since the loan product has many requirements/guidelines that must be met. Moreover, we're still experiencing a seller's market. I'm sorry, but no homeowner is going to sell their property $50k below market value when they can easily list on the MLS and sell for $10k-$15k over asking (this is at least what I'm still seeing). What is your strategy for contacting property owners? Acquiring deals off-market is a full-time job.
It's always good to have someone who knows what they are doing walk you through a transaction, especially if it is your first time. Being an off-market, you could hire a RE agent and negotiate a flat-rate for their services.