Repairing damaged areas and staging your Lake Havasu home are smart things for any seller to do before placing it on the market. But how many homeowners take into consideration whether their property meets the guidelines of specific types of loans before they sell it? When you consider that the FHA insures approximately 30% of all mortgage loans right now, you would be wise to make your Lake Havasu home FHA friendly. Otherwise, you may be cutting out approximately 1/3 of potential buyers.
Your first step is to see if your Lake Havasu home falls within the lending limits set forth by FHA. As of November 19, 2012 (the last reported revision date), the FHA set a mortgage limit of $322,500 for a single-family home, $412,850 for a duplex, $499,050 for a tri-plex and $620,200 for a four-family property. To get the most up-to-date information on FHA mortgage limits, please visit the HUD website here.
Next, home inspections are a requirement for most buyers. In fact, it is highly recommended that you have a home inspection performed on your property before you sell your Lake Havasu home so that there are no surprises when it comes time to negotiate with a buyer. The FHA requires that sellers provide buyers with a form that describes what they can expect from a home inspection and what the difference is between an inspection and an appraisal. You can download that form here.
Another reason for you, the seller, to have a home inspection done is so that you can find out if there are any major problems you need to take care of to be approved by the FHA. For example, the FHA will not approve a loan on a home if has a roof leak, mold, lead-based paint (both inside and outside pre-1978 homes) or structural damage. If your inspection shows these major defects, it is highly recommended that you get them fixed before you place your Lake Havasu City home on the market.
Finally, it is common for FHA buyers to need assistance with their closing costs. You can entice an FHA buyer if you can provide the help they need by offering to pay a certain percentage of the closing costs. This is not mandatory for an FHA loan, but it will certainly make you much more attractive for buyers.
You don't have to go to any extra trouble to make sure your Lake Havasu home is FHA friendly before you sell it. However, you are potentially cutting out almost 1/3 of your buyer audience if your home does not fall under FHA guidelines. Do a little research, ask your real estate agent some questions and get your home up to snuff before you set it loose on the Havasu real estate market. That way, you have the largest pool of potential buyers possible, creating a much more successful real estate transaction.
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Brenda & Willie Gonzalez, RE/MAX Prestige Properties, Lake Havasu real estate
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Originally posted on our Lake Havasu Real Estate blog here: http://lakehavasulifestyle.com/fha-friendly-lake-havasu-home/.
