WHY SELLERS AND AGENTS MIGHT AVOID FHA BUYERS?

In this very competitive market when sellers are typically receiving multiple offers at or over asking we've seen a trend for sellers and listing agents to choose not to go with FHA buyers.

There are a few reasons this happens but the most common one being that the FHA checklist the appraiser uses could add a few extra hurdles for sellers to take care of. Sellers may be required to fix items like chipping paint (even on the outside of a home), secure railings inside or out, make sure every step and stair is sturdy and in good repair and replace broken windows or other potential safety hazards found. For this and other reasons, FHA buyers may find their offers passed over.

However, in our experience, most lenders have a lot of confidence in FHA buyers because they've had their credit, income, debt, and employment reviewed before they're given a pre-approval.

It's our opinion agents and sellers should take a detailed look at FHA offers instead of forgoing them because of the stigma that is placed on these buyers. These first-time homebuyers are crucial to a stable real estate market where they can move from renters to owners and allow the cycle of buying and selling to continue for us all.