Denise Amara, Driven by helping others achieve success! (FlyerCo)

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Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

I recently had an offer on a foreclosure property accepted  where the buyers used FHA. I think it's important to look closely at condition of the home before making an FHA offer on any property including checking the permits.  

May 02, 2016 10:12 AM
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

FHA requires property to meet ALL health and safety code violations. Bank will NOT do any repairs to meet this. Bank is going to look for the slam dunk easy deal to close. A buyer with larger down payment and conventional loan approval has better chance of closing. Why you ask -someone with 3.5 % down may not have ability to pay more down if appraisal comes in low.  Look into FHA 203k.  How is water heater strapped? Are utilites turned on? All appliances in ? Loans are available with 1 year after short sale 15% down no MI rate is high. You must be perfect on housing payments (rent or mortgage) AFTER the short sale. 

May 02, 2016 08:29 AM
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Positive at ya!

When dealing with banks, it helps to remember they have NO emotional ties, it's strictly numbers to them

May 02, 2016 09:39 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

I buy a lot of foreclosures, never for asking price though, and I do find that conventional financing would never fit in with the hoops that must be jumped through.  I have a business line of credit that allows a lot of flexibility.

May 02, 2016 05:46 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Denise Amara - I am sure you have a positive update by now....

Good Luck.

May 02, 2016 03:08 PM
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

I have not seen a foreclosed home that will qualify for a FHA loan in years!

May 02, 2016 01:18 PM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

FHA has more stringent requirement on code, structure, termite clearance.

Hope  you get the property.

May 02, 2016 08:41 AM
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Santa Clarita & Aliso Viejo

FHA buyers won't usually have the ability to remove the appraisal contingency or have the funds needed to pay over the appraised value.  FHA Appraisers can demand the seller make repairs in order to do the loan.  Conventional buyer can have a higher credit score and more funds so they may have less canceled transactions.

May 02, 2016 08:34 AM
Denise Amara
FlyerCo - Coral Springs, FL
Driven by helping others achieve success!

Muchos Gracias to all the sources of positive vibes! The stars aligned and we are a go! The eagle has landed, I repeat the eagle has landed! Jennifer Mackay Praful Thakkar William Feela you have now! Pete X with X Group Real Estate Advocates Annette Lawrence , Palm Harbor, FL 727-420-4041 

May 05, 2016 10:33 AM
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, MD, MT, NC, NJ, NV, OK, OR, PA, SC, TN, TX, UT, VA, WV - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

If the condition is not an issue, there shouldn't be a problem with FHA.  That said, FHA does unfortunately have a bad rep for really no good reason.  Best of luck with your offer!

May 02, 2016 08:05 AM
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

It's more of a why you should care about the different loans that are out there with the different criteria and using that information to best to serve your client's goals. Contact the lender for more information especially the FHA criteria on the condition of prospective property. I agree with Inna Ivchenko.

Wishing you the best with the offer and of you learning more about FHA loans!

May 02, 2016 07:55 AM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Depends on the condition of the property, but in my experience, banks are perfectly fine with FHA ( unless you ask too much and for too long term). 

May 02, 2016 07:23 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

They normally do not meet fha rules for up keep.

May 07, 2016 12:24 AM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Because the guidelines and terms are different, most sellers prefer a Conventional loan over an FHA.

May 03, 2016 01:04 AM
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Good luck; you will most likely be up against cash investors. These are getting tougher for owner-occupied buyers.

May 02, 2016 11:48 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck.

May 02, 2016 11:44 PM
Becca Rasmussen
HomeSmart Cherry Creek - Highlands Ranch, CO

++++++positive thoughts. :0)

May 02, 2016 11:28 PM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Banks probably can't sell some of the FHA mortgages. Good luck.

May 02, 2016 11:14 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty


May 02, 2016 11:12 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

The minimum property standards worry some sellers.

May 02, 2016 10:58 PM
Susan Laxson CRS
Premier Sotheby's International Realty - Naples, FL
The Michelle Thomas Team

Good luck and while most of my transactions are cash or conventional, I have never had an issue with an FHA loan.

May 02, 2016 10:53 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

FHA and bank owned homes mix like oil and water. The bank wants a sure sale, wont fix anything and wont re-negotaite. The FHA appraiser and underwriter will want the home to be completey fixed, no issues and bank owned homes are not always "all fixed". FHA will take their time wth appraisal, underwriting and decisions while banks want quick closings. 

May 02, 2016 10:30 PM
Mary Vavala
Suncoast Life Realty - Bradenton, FL
Helping you find your paradise

having done mortgages prior to real estate the reason a bank prefers conventional or cash is because they are not willing to correct or fix what the lender may require.  FHA/VA etc... all pretty much want to make sure the house can be livable.  It can be ugly but there are not structural issues/safety issues or santitation issues. That's not to say they won't consider the offer because I have seen some banks do minor fixes. Good luck!

May 02, 2016 10:22 PM
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

That is not true at all - they don't care but they will take a conv over fha because of the appraisal issues.

May 02, 2016 10:03 PM
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

You go girl.


  1. Assurance of closing.
  2. Fewer hoops to jump through
  3. Greater potential of conventional buyer protecting seller from appraisal.
  4. Possible marginal buyer. (You can remove this perception by what is contained in the purchase agreement)
  5. NOTE: it is not banks who prefer it EVERYONE.
May 02, 2016 09:39 PM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Good luck.

As far as type of financing, the condition of the property as well as length of time on the market and other competing offers will come into play.  

May 02, 2016 09:27 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

FHA appraisals could require repairs and foreclosures are sold "as is/where is."

May 02, 2016 08:57 PM
Melissa Jackson
Century 21 Alliance Properties - Azle, TX
Helping You Make The Right Move

Wishing you the best on your offer!

May 02, 2016 01:05 PM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Denise, we all prefer conventional loans, but if there's nothing else on the table, we advise out clients to say yes.  Good luck on yours - may you be the only offer!

May 02, 2016 12:57 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

The truth is they prefer cash but I wish you lots of luck. You never know. I sold a foreclosure a couple of months ago and it was accepted on FHA and closed with no problems.

May 02, 2016 12:11 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

The FHA Appraiser is the potential deal-killer in this transaction.

May 02, 2016 11:55 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Go to a credit union or two or three....foreclosures and fha usually don' t mix

May 02, 2016 11:49 AM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

I just closed on a foreclosure that was VA and VHDA.

May 02, 2016 10:41 AM
Shawn and Angela Miller
Berkshire Hathaway HomeServices Amabassador Real Estate - Lincoln, NE
Lincoln and Omaha, NE REALTORS®

We've done both, however, many of the foreclosures are not FHA insurable do to poor conditions.  Not sure if that is the proper wording, but that's what the foreclosure listing agents in our area type in the agent comments on the MLS.

May 02, 2016 09:17 AM
Ryan Huggins - Thousand Oaks, CA - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Most sellers I've dealt with prefere conventional offers versus FHA or VA.  There are less hoops to jump through and a home that needs work may not qualify for FHA or VA.

May 02, 2016 08:20 AM