FHA Mortgage Contingencies are OK These Days

“Hi Joe,

I have gotten two calls from my real estate agent last week, that actually hasn’t happened in a while.

He tells me that there are a number of properties that are now available in my price range. He indicated that he has spoke to the listing agents, and they don’t see an issue with presenting FHA mortgage contingencies. As you well know, that has been a real problem in the last 12 months. In most cases I was basically told to not waste my time, apparently not the case any longer.

Can you run new numbers for me as I know interest rates are much higher at this point. If this makes sense, please put together a new pre-qualification letter for me.

All the best Bree.”

Sometimes, I just don’t get it!

Why would a home seller not accept an FHA continency if the client is qualified? Maybe if there were something really wrong with the home that a home inspector or appraiser would bring it up as an issue that needs to be addressed before closing.

Always remember if there are outstanding issues, an FHA 203K allows for renovations. Oftentimes, clients end up saving a lot of money, and getting a home more to their liking, by buying a fixer upper and renovating the home.

If you want to discuss a scenario, I would be happy to talk about it with you. As always there is no obligation.