Sellers & Listing Agents -- Are you hurting your potential buyers mortgage payment?

You are a seller that lists with a real estate agent, and one of you decides that you will not accept FHA financing as a means of a potential buyer purchasing your home? Why is this? Have you been misinformed by the general public? By a real estate agent that doesn't know any better?  By an agent who is remembering issues with FHA appraisals from the 1990's?

What about the lender that the previous buyer was using who was helping them with a FHA mortgage.  And the loan didn't close. What is it because it was a FHA loan?  Was it because of the incompetency of the lender or the loan officer?

Overall, are you willing to shunt away a better buyer who might just be using FHA financing, just because of the rumors of the past?

So, how bad do you think FHA mortgages actually are......  What sparked me to write this post was a comment made by Mike Smith, a loan officer out in California.

Mike said this.... "In my neck of the woods, CA, in addition to FHA, I utilize Access with a Radian second mortgage as well as CalHFA with a silent second and silent third.  In both cases we can get a 3% seller concession and although the rates are not as good as a SRP bought down rate with an FHA, some sellers still won't accept an FHA offer, so we go with alternatives in a declining market."

Sellers and real Estate agents.... just because it's an offer backed by a conventional mortgage, doesn't mean that it's still guaranteed, even if it is backed by a pre-qualification letter. Conventional and jumbo guidelines are still changing.  Could you lose money on your home if a conventional loan is delayed because of a change in program?  Yes, it happens. Do you realize that a buyer with a credit score of 679 or less and 10% down or less, will be better off with a FHA mortgage. Here is a great example of this : FHA mortgages vs Conventional mortgages....  which is better?

Overall, are you a stubborn seller listening to the wrong people? The wrong advice?  And part of the blame should be given to the loan officer for not educating both the seller and the real estate agent that might think otherwise. Conventional mortgages doesn't always mean better, even for the seller. FHA mortgages are not just for first time homebuyers, those with less than perfect credit, and those with less than 5% down. Read more to find out : FHA mortgages - FHA loans & things that you need to know about them!!! What you need is a true mortgage professional that has all of the programs and understands what is best for the buyer. Most of all, can step in to explain it to the seller or their real estate agent. 

 

And read this to understand that putting less money down might be better for the buyer. : FHA / Conventional mortgages OR Cash purchases???

And more education of FHA mortgages : Top 10 reasons FHA is a great way to finance your home....

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright  © 2008    by Jeff Belonger

 

Author of this blog : Jeff Belonger

e-mail : jbelonger@ihmci.com