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Do FHA Buyers Stand a Chance in Denver’s Hot Market?

By
Real Estate Agent with Aspen Lane Real Estate Colorful Colorado CRE# 40005863

 

The Denver, Colorado real estate market is still HOT HOT HOT!  Homes priced under $300,000 are enjoying multiple offers the first 24 hours of listing.  This means, as a buyer, you need to run to all new listings before they are Under Contract.

 

I am working with two sets of FHA buyers in this price point.  It has been a difficult task finding a home in their desired location where they have a fighting chance of getting their offer accepted. 

 

Lately, I have been working with quite a few Native American Indians who wish to utilize the Section 184 flavor of FHA loan which gives them some added benefits by requiring less down payment and lower mortgage insurance premiums.  Trying to get their offers accepted will probably take an act of Congress!

 

I am no longer specifically saying that we are using this loan and only saying that it is FHA but my buyers are still at a disadvantage when there are conventional and cash offers on the table. 

 

The only thing I can do at this point is counsel my buyers that it may take ten contracts before we get one accepted.  Patience is the key in this market. 

 

There are no indications that the Denver real estate market will cool off anytime soon.  Of course this is a good and a bad thing.  It just depends on which side of the sign I am working. 

 

 

 

Comments(14)

David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

I am pretty sure they do as I close a ton of these every month and many are purchases

Sep 04, 2015 02:07 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

So true. It's pretty amazing how home affordabilty seems to be disappearing. And any loan process is a daunting task of late. Hope they realize it will happen - but it may take a while. Hang in there. 

Sep 04, 2015 02:34 AM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Good to hear David - but you see your contracts after all the work has been done by the Realtor.  Its all about location.  Some locations are easier to work in but the hot locations present quite a challenge.

Sep 04, 2015 02:34 AM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Thanks Debb.  I am searching a few times a day now.  If something comes up - I jump in the car and head out.

Sep 04, 2015 02:35 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Belinda -- it's difficult for buyers(and their agents) during these extreme sellers' markets.   Patience is key and when the day is over -- some wining but no whining  Tomorrow is another day.  

Sep 04, 2015 03:08 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Belinda I feel for you as I've been in your shoes many times on and off this past few years.  It's so hard on the buyers to not win the bid. The good news is your buyers have an expert on their side that doesn't give it. I know you'll get the winning bid for your buyers.

Sep 04, 2015 03:11 AM
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Belinda,

 

Agents in slower markets think would be wonderful to be in a hot market but if anything it takes more work than a normal market. Hang in there.

Sep 04, 2015 03:13 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Belinda - We have had the same problem with several of our buyers this year, and you're right - it's brutal but it's just a matter of patience and keeping them in a positive frame of mind until the stars come into alignment.

Sep 04, 2015 05:30 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Belinda - it really shows how local real estate is.  There is definitely a mixture of seller and buyer markets in the U.S.

Sep 04, 2015 05:42 AM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

That is a very good question Belinda. I think that FHA should get a crack at a property but it is up to the seller. I have had FHA sales and it went just fine. I am told that in the 60's FHA was very popular.

Sep 04, 2015 08:43 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

we have never really had that kind of market here.  Fun to read about, but not sure I want to live it 

Sep 04, 2015 02:32 PM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Belinda. I can see that certain financing can be tough in markets like yours, but the reality, that is your market. Prospective buyers that need financing like FHA need to move further away from Denver.

Make it a great weekend!

Sep 04, 2015 08:51 PM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

this is a tough situation. Our job as agents is to advise our clients on the easiest best way to sell their home. FHA and VA deals can be more difficult.

Sep 05, 2015 01:32 AM
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

This is a shame, Belinda, and something I'm seeing down here, too.  We really need to do a better job to clear up the misconception that FHA is somehow a program for weaker buyers, or creates a more difficult loan process.  In reality, FHA opens the door to more buyers, and is just as easy, if not easier, to get done than conventional loans in most cases.

Sep 08, 2015 05:15 AM