Am I missing something here?
I work in an area that up till now rarely dealt with FHA loans due to the high home sales prices and low FHA loan caps.
I just started working on a pending sale transaction where the buyer is going with an FHA loan. Horror of Horrors! My first thought was to load up extra heavy on the old Prozac until the transaction fell apart, then finish up with heavy drinking and deep resentment.
But wait! Something has changed here since my last FHA transaction (about 7 years ago).
When I called the loan officer and asked him if the seller still has to complete section 1 AND section 2 items on the termite report, he said "No, they don't require that anymore. Just whatever the buyers and sellers agree to." EXCUSE ME?!!!
Then I asked him if the appraisers still take forever to schedule the appraisal appointment, then do they perform a home inspection on the property and call safety issues that the seller has to fix (the appraiser would go out a second time to verify the repairs had been made). He said, "No, they don't really do that anymore either." HUUHHH?
So I asked, "Well, what is it FHAis GOING to want from the seller? There's got to be something! An inspection of the attic, the seller's first born son, something!" And he says, "Ummm, not really-FHA has loosened up their criteria so buyer's who get this kind of loan are just as attractive to a seller as a conventional loan buyer." WHAT THE....?
So here's my worry (I guess I don't trust the government to make anything easy), NO ONE on this transaction has much experience with FHA loans. The loan officer has one FHA transaction under his belt in the last 6 months.
I was trying to look up FHA loanson the Internet and I'm just not finding the snag... The "Yeah but...," or the "Oh we forgot to tell you..." information that is going to tank this transaction or at the very least, give me a migraine and more gray hair!
Could it be true that this is going to be a hassle-free transaction? So far the appraisal and termite have been completed and there are no unusual repair requests from FHA. The buyers are contracted to have loan approval in another week. Then we close in another 30 days.
Is there anybody out there in Real Estate land who can share their recent FHA experience with me?
I hate to be a pessimist, but I want to make sure I'm prepared for any potential ensuing disaster. In the meantime, I'll keep y'all updated on my FHA transaction experience!
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