I'm officially afraid of FHA financing. The market is so strong that I have the option to fend off FHA offers for my sellers. There are plenty of mediocre credit score, low down payment, conventional loans around--if you look for them. Why put a seller at risk for FHA repairs if you don't have to?
Two years ago I had a 60-year-old, modest row house on the market. I had sold the house to the owners four years before so I had been through a building inspection and was confident that the house was in good shape. When it came time to sell, we took an FHA offer. The potential buyers had their building inspection. We negotiated the repairs and the price. Then came the FHA inspection. The FHA inspector required additional repairs to the sidewalk and storm drain--issues that had not come up in two different building inspections: Total cost-- almost $4000 dollars. That is a crazy, high amount on a $125,000 sale. I don't know what the answer is. I used to believe in FHA. I also want every buyer to get a good house at a fair price. Thoughts?