Seller Proposed Terms - What Does it Mean?

Hi Cathy, I hear you. I have experienced this same scenario when the listing agents have listed FHA or VA on their listing, but later I find out that these homes will not pass the VA or FHA appraiser. It's frustrating to see homes listed with VA or FHA in the proposed terms in the MLS, and find out later they really aren't. I have often called ahead of time to speak with those Listing agents. Some are honest and others aren't.

Some Realtors may not know...You can find the VA Minimum Property Requirements in the VA-Pam 26-7 Chapter 12 and can find the ones for FHA on the HUD website.  

VA and FHA can be somewhat strict, but it isn't impossible.  Now, if the home is falling off of the foundation, that is going to be tough :).  The seller is required to pay for the WDI inspection on a VA; however, it is still negotiable in the contract whether a buyer or seller pay for the treatment should anything be found.  

It may be hard to find a home that is FHA or VA eligible that is under $100,000, but they are out there.  Sometimes you have look and see though and unfortunately, since some listing agents may not know the different Loan requirements, just calling and asking may not be sufficient.  They may think that they are being honest...meaning they aren't trying to out right lie to you :).  

Good luck finding your buyer the perfect home!  I know you can do it :)!

Cathy....doesn't that drive you crazy?  I've been in that situation before looking with FHA buyers and I'd much rather have the listing agent be honest and up front and tell me it won't qualify.

Good Evening Cathy, you are not alone having this problem. We have it hear to. Although some listing agents are telling everyone "no problem with fha" because they want more showings, some agents truly do not know what it takes to pass a fha appraisal/inspection. This is why sellers should choose an agent who is well experienced to offer the seller tips to get it to pass a fha inspection and be truthful with buyer brokers to get the Right type of buyer to avoid delays, pain and suffering for both the buyer and seller. Nice to see you posting again.  Have a great night and Happy Halloween

Cathy,  The real issue here is that there are so many ill-qualified agents in the business who don't know or don't care. It's unfortunate that so much time and energy is wasted on these properties for clients who will not be able to close on them.

There's nothing like driving 15 miles to a rural listing that the agent claims will "breeze through" FHA. Only to discover the home has unfinished rooms and no flooring.

Hey Cathy, good to see you. I normally deal with a majority of very professional people...although finally just closed on a nightmare transaction. Not necessarily what you describe here, but certainly a lot of dishonesty and lack of communication from the listing team. Yes, team- three women who wouldn't even respond to repeated emails, texts and phone calls for information. It was bizzare.

See this regularly on the loan side, I have one right now that when I asked the listing agent if it was a flip she said yes and after 4 requests for info on this I finally had to tell both agents and the client go ahead and get me an extension due to me not getting the data I need. Why do we have to ask, it should be info we are given when we all know it's an issue. Additionally, more barriers to entry would help here too in your situation!

Cathy: A well-researched, well-written post!  I would also comment that even in non-FHA or VA situations, because so many defects would be caught by a good home inspection, it's astounding to me how many seller disclosure shenanigans still abound in the real estate market.  Great article- Thank you for sharing!