As a seller, do you listen to your listing agent's advice about potential buyer's financing offers with FHA Loans?

HELEN... .  which seasoning issues are those?  And when you say the unauthorized garage conversations, you mean?  From my understanding, if you have the permits and that the garage was converted legally, then you are okay.  It just comes down to the appraisal though, where it might be an issue.  Meaning that depending on what it was converted into, that it usually won't add much value to the house. Overall, you can change most things with a house, it just comes down to having the permits and then a CO after the conversation. I am not sure, unless someone told you that you can't convert garages and have a FHA loan.  thanks

NICK & TRUDY.... .  excellent point... it all comes down to how the listing agent explains things to their seller(s).  I have found give bad insight or opinions, which leads to all of this misinformation.  And thanks for the polite compliment.

BARBARA JO... .  yes there are... I even had a realtor a few months tell clients of mine that I had qualified them for a USDA loan that they were better off with a FHA loan.  And this realtor came back and said, my loan officer even agrees.  WOW. rut row.. this loan officer didn't even interview these borrowers, knowing such things as their goals, assets, and so much more... aaarrrggghhh  Thanks for the compliment.

AUDREY... . wow, you must have started out as a realtor when you were 16 then.  ;o)  Yes, these agents just aren't familiar with FHA and or VA.. or they got some wrong information from their loan officer. Overall, you are an excellent asset to your clients because you don't tell them what financing offers to accept, but that you should be focusing on the best offer or what's best for them.  thanks

TAMMY.... . point taken.. real estate markets are local and not all markets warrant FHA financing... but overall, just some things that need to be mentioned to keep some on their toes.  thanks

HELEN.... okay.. and one needs to be careful about how much that property is being sold for. There is a 20% cap on it...  and now that makes sense about the garages. Yes, if they don't have permits and or CO's.   thanks and my pleasure... thanks for the support.

MAYA....  In my opinion, no... but it does come down to the credit score and the down payment. I try to write a post once every 3 months comparing FHA loans to conventional loans. Giving difference credit scores and down payments.  This will show which way is better... and in many cases, if your credit score i below 680 and you are putting down 10% or less, FHA will usually be better for you.  I even wrote about the fact that even with 20% down and a credit score of 620, that FHA was better.  You also have to remember that you will have PMI issues from the PMI companies, especially when putting 5% down. Here are a few comparison posts that I wrote.. thanks for asking..

FHA Loans vs Conventional Loans - Why FHA home loans in New Jersey can be better with 5% down  - with 5% down

 FHA Loans vs Conventional Loans - Things you should know about even with 10% down - 9-19-09 - with 10% down

LENN.. .  I totally agree... many agents will just go off of their bad experiences, which is just bad when giving advice to buyers.

IRENE... . unfortunately, some realtors do. Now, I can understand if the property is a mess, and would have a problem with a FHA mortgage. But if it's just painting issues and such, then it should not be a problem.  Anything great, the buyer could still use a 203-k loan. I had a realtor once tell me to switch the buyers qualification from a FHA to a conventional loan.. the reason was because the foundation would have not passed FHA. What?  And the buyer doesn't even know this... I said no way and that realtor would not let me back in her office ever again..  it's a shame.. thanks

LORRAINE or LORETTA.... . well, that would make perfect sense why some loans might not be popular if there are many cash buyers.  In regards to your VA question, asking if there are VA no-nos still out there, I don't follow that question. Could you be a little more specific?  thanks

SHERRY... .  I think that is a good position to take. I just find that there are still realtors out there that tell the seller what offers to accept and what not to accept.  And it could hurt the sellers in some cases.

LORI... .  that was the reason for this post.. why would a realtor jeopardize a listing if a FHA offer came in?  In my opinion, in some cases, it's because of what the agent thinks they know or heard, when it could be wrong or misleading information about that particular loan.  thanks

DOUG.... .  I love hearing from other loan officers and or ex-loan officers and get their perspective on what I write... so thanks. My first FHA loan was in the middle of 1993.... overall, I couldn't agree with you more and I wish more real estate agents would view your opinions to the fullest.  And thanks for the polite compliment.  Just curious.... how did you happen upon this post?  I wrote this post like 10 days ago and just in the last 48 hrs I have received like 7 new comments... thanks

AARON... . I think many of us would be in the poor house and I think many borrowers would still be renting.  thanks