How much time is reasonable for the financing contingency? Real Estate Agents and Loan Officers Please Help!

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Services for Real Estate Pros with RE/MAX Town & Country

How much time is reasonable for the financing contingency? Real Estate Agents and Loan Officers Please Help!

I have an offer in hand on the resale of an investment property. There is a financing contingency for an FHA loan.

I'd like to know what is a reasonable period of time to allow the seller to get FHA financing? As the seller, I don't want to allow too much time but I also realize that my counter offer must allow enough time for the financing to be secured.

Real Estate Agents and Loan Officers Please Help!

I would greatly appreciate your answer to the question and your thinking behind your answer.

How much time is reasonable for the financing contingency?

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Topic:
Mortgage / Finance
Location:
Virginia Prince William County Manassas
Groups:
Power of Activerain
VIRGINIA
Tags:
financing contingency
mortgages
fha
realtors contract
counter offer

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Rainmaker
856,798
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

At least 17 or more days in the current market to get approval.

Jul 08, 2010 06:48 PM #1
Rainmaker
5,538,881
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

we allow 30 days for a mortgage contingency to be satisfied.....

Jul 08, 2010 06:49 PM #2
Rainer
58,151
John Marion
RE/MAX Town & Country - Canton, GA

Hi Mark and Tim. 17 days sounds like music to my ears. It is a very aggressive timeline and I like it a lot. Have you seen it happen that fast recently?

Jul 08, 2010 06:52 PM #3
Rainer
58,151
John Marion
RE/MAX Town & Country - Canton, GA

Thank you Barbara. 30 days does seem good to me too. I like the 17 days suggested my Mark and Tim. What if I split the difference between these two numbers and countered with 21 days? Please let me know what you think that is pushing it too fast.

Jul 08, 2010 06:55 PM #4
Rainmaker
5,538,881
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

I think 30 days is the appropriate time to  receive a committment with no contingencies....seventeen will be enough time for a committment, but it will not be a true committment....there will be an extension needed to satisfy contingencies....unless those are satisfied, the buyer will need to extend the date to protect his deposit....

Jul 08, 2010 07:02 PM #5
Ambassador
2,332,058
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Ask the lender the buyers plan to use what they recommend for financing. I have seen 17 days in my market with some homes...and 30 days with others. Make sure their loan team has experienced FHA people. Also ask them what's the longest FHA loan contingency they've had in the last few months-and why it took so long.

Jul 08, 2010 09:16 PM #6
Rainmaker
444,411
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

We usually see everyone agreeing to around 21 days.  That is generally more than sufficient time for the initial underwriting review.    I rarely ever get a signed contract immediately upon its execution, so we usually lose a few days with that.  We do need a fully executed sales contract to be able to order the appraisal.  In the Atlanta area, the standard due date for an appraisal order is 7 days from the order date.  Having less than 21 days can make it a little difficult to get the appraisal review included in that time period. 

Jul 09, 2010 02:47 AM #8
Rainer
58,151
John Marion
RE/MAX Town & Country - Canton, GA

Barbara - Thank you for the follow up message and details. I like that phrase "committment with no contingencies" and that is what I'm looking for whatever the time frame ends up being.

Michelle - Those are some great questions for me to ask the lender. Thank you!

Michael - Thanks for chiming in. It seems most people agree 30 - 45 days is enough.

Rodney - I like it if I can push for 21 days. Thank you for taking the time to explain the time period for ordering the appraisal and it actually being done.

Jul 09, 2010 05:07 AM #9
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Rainer
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John Marion

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