Selling Your Home?
Should You be Leery of Accepting an Offer from
Buyers Approved for FHA Financing?
It's not unheard of to hear my Borrowers (and their Agents) say that Sellers are expressing a leeriness about accepting offers from FHA Buyers ...
It's been my experience over the years, that the property issues found below are those categories most often raised by FHA Appraisers:
- Peeling paint: Was and still is an issue for homes built before 1978. (Lead was used in paints until the year, 1978. Lead poisoning is a health concern/issue.)
- Certifications Required: Certifications for Roofing, Heating, Plumbing, Electrical, Structural Contractors were most often requested. (Functionality of "major components" of real concern as determined by the Appraiser of Record)
- "Nit-Picky" items: Items determined by a so-called "nit-picky" Appraiser
As a result, Sellers oftentimes object to accepting FHA Financing on a Contract - even when the requests by FHA Appraisers for repair(s) are justified. Their rejection of an FHA Financing offer can, in turn, create roadblocks to Contract completion ... or undue hardships on their prospective Buyer.
For the most part, HOME INSPECTIONS have taken the guesswork out of the FHA Appraiser's "to do list". The role of the Appraisal should now be viewed as more of a "Value Protection" for both the Buyer and the Lender.
- Evidence of cracked and peeling paint was found at the time of the inspection on almost all surfaces of the exterior of the home, garage and the shed
- Home requires exterior scraping and re-painting on nearly entire exterior siding, trim, and soffits
- Shed, garage, and house exterior also show minor signs of wood rot
- The Shed was locked at the time of inspection. A re-inspection will be required to view shed interior
- The patio is dug-out of the original grade and has three perimeter walls surrounding. All perimeter walls present falling hazards and exceed 36 inches in height. A full-surround safety railing is recommended to prevent accidental falling
* When in need of Mortgage info or service when buying, refinancing, or Investing in a home in New Lenox - elsewhere in Chicagoland - IL & WI, contact me. I'll be happy to put my 40+ years of mortgage experience and expertise hard to work on your behalf.
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