Novice question re:FHA offer

By
Real Estate Agent with Long & Foster Realtors

We got an offer which is FHA, but supposedly not contingent on an appraisal - but if it is an FHA loan, it really is contingent on appraisal/comps/market value correct? Just want to pick the correct offer and our market is very funky at this time and our home is the first one to go up this Spring and the only comps are short sales/foreclosures which were only on for one day and closed substantially less.... thanks everyone!!

 

Belinda

Long & Foster

Comments (4)

Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Belinda... I am not sure if I am semi confused and or that I still have cobwebs in my head, from the lack of sleep all week...  all you recieved was an offer on the property.  All mortgages will need an appraisal unless it's a HUD home... not unless this property had already an FHA appraisal done in the last several months.  The lender involved should be able to tell.  PS... the one main piece of advice that I can offer. Don't choose the offer based on a loan program.  I know some realtors that tell their clients not to accept offers with FHA or USDA financing.  These aren't bad loans. It all comes down to who actually qualified that borrower.  Depending on your comps, you will have issues with any type of appraisal, not just FHA.  If you have any questions, please don't hesitate to call me.  This might be easier on the phone.  609-440-5133   thanks, jeff

jeff belonger

Mar 13, 2010 12:28 AM
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Belinda, It appears that the other agent just did not include an appraisal contingency with the offer.  As Jeff referenced, all FHA loans, other than HUD REO's, do require an acceptable appraisal.  With an FHA appraisal, both a value supporting the agreed upon sales price and HUD Minimum Property Requirements must be met.  Just because there is no appraisal contingency for this, doesn't mean the standards don't have to be adhered to.  If the home is in good condition, then you should not have too much to worry about from the MPR stance.  FHA appraisers look for obvious health and safety issues and all utilities must be on and functioning for their inspection.

Mar 13, 2010 12:44 AM
Belinda Sallberg
Long & Foster Realtors - Chantilly, VA

Thank you Jeff and Rodney! (I still haven't figured out how to reply to a blog comment, sorry)

Mar 13, 2010 12:47 AM
Richard Weeks
Dallas, TX
REALTORĀ®, Broker

I think HUD/FHA rules would require the house to appraise for a certain value or the buyer could cancel the contract or the sales price would need to be adjusted, or the buyer would be required to make a larger down payment.

Mar 13, 2010 01:04 AM