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A Scenario Where FHA Offers are Superior to Conventional Offers

When to accept the FHA Offer? A Realtor/Client called yesterday to discuss multiple offers she received in the $650,000 range for a $625,000 listing. Several offers involved conventional financing, and several involved FHA financing. Her concern was the appraisal; there were only one or two comparable sales that bracketed the $650,000 price while the majority of the comparable sales were in the $600,000 range.

In this situation, it is all but a certainty that the conventional offers will result in appraisal issues because conventional financing requires adherence to the HVCC appraisal guidelines. This has happened to us time and again. HVCC appraisers continue to come in below the contract price irrespective of the number of people (multiple offers) willing to pay more.

Alternatively, with FHA financing, WE can choose the appraisers from our own pool of much more skilled appraisers. Furthermore, we can discuss appropriate comparable sales with our FHA appraisers, and we can all but guarantee that there would not be an appraisal issue with the above scenario.

Our point is once again: FHA offers are often superior to conventional offers. Do not shy away from FHA financing.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167