Tag Archive for: fha financing

Agent Refuses Solid FHA Offer – For No Reason – Then Has No Offers

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There are three ways to look really old: Never wear sunscreen (guilty) Frequently reference the “killer U2 concert” you saw at the Red Rocks Amphitheater in 1983 (“Dude, I like totally cried when Bono sang 'Bloody Sunday’…”) or Refuse FHA offers because you’re concerned about condition issues. We recently had a listing agent refuse to accept the only solid offer she’d received for her listing because it involved FHA financing. She was concerned that the FHA appraiser would flag too many condition issues – and her sellers had already told her they would make no repairs. We looked at the listing photos carefully and saw no serious issues – so the listing agent walked away from her only viable offer for no reason.Read More

30% Down Requires No Appraisal Contingency Or Shortfall Funds, UNLESS…

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This is a reminder that appraisal contingencies and/or proof of funds to cover appraisal shortfalls are unnecessary with large down payments. This is because lenders can easily shift financing from 30% down to 10% down, for example. Buyers can then use the savings from the smaller down payment to cover shortfalls – if an appraisal comes in low. We have, in fact, saved many 10% down purchases by shifting them to FHA financing with only 3.5% down. But there is a huge exception to this rule – and it is also good news!Read More

5% Down For A $1.6M + Fourplex; 3.5% Down FHA Too – But Be Aware of FHA’s Self-Sufficiency Rule!

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The “low-balance”/low-cost area “loan limit” (or max loan amount) for a fourplex is $1,551,250. This means that owner-occupied fourplex buyers can obtain Fannie/Freddie (conforming loan) financing with only 5% down!Read More

$2.4 Million Property With 3.5% Down! DSCR Loans Too

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Someone on X was recently bragging about buying a 4-unit property in San Francisco for $2.4 million with only 3.5% down.Read More

In Defense of FHA! Misconceptions Persist!

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FHA financing is ideal for first-time homebuyers or borrowers with low credit and limited savings. FHA loans have lower rates than conforming (Fannie/Freddie) loans. This is especially the case for borrowers with low credit scores (under 680).Read More

If Property Won’t Appraise, Change Financing!

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We have a buyer who is willing to offer $450,000 for a property with 10% down. The problem is that, according to her agent, “the property will never appraise for more than $380,000, because there are no comparable sales anywhere above $380,000.” Read More

FHA Financing – Why & When Listing Agents Should Not Be Leery

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It is a huge myth that FHA-financed properties need to be in better condition than conventionally financed properties. The condition requirements are largely the same for FHA and conventional properties. FHA does NOT require a clear Section I Termite Report. FHA appraisers are more likely to call out peeling paint, but that is about the only difference—and that is only an issue with older homes.Read More

Using Rental Income From Units to Qualify; Vacant Units; Illegal Units

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I blogged recently about “House Hacking” (here and here) or buying multiple-unit properties in order to use the rental income to subsidize one’s mortgage payment. We received numerous questions in […]Read More

No Bubble Here; FHA Condo Spot Approvals

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FHA CONDO SPOT APPROVALS ARE BACK STARTING TOMORROW Starting tomorrow, an entire condominium complex will no longer need to be “FHA Approved” for a buyer to use FHA financing to […]Read More

Competing With Builder Financing – False Enticements & Lender Credits!

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Most new home builders offer large credits to buyers who opt to use the builder’s preferred mortgage company. The credits come in the form of interior “upgrades” (better floor coverings, […]Read More

FHA Financing Is Fast, “As Is,” & Easy; 15 Day Close

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Heejin and I did a presentation yesterday on marketing for real estate agents, based on everything we have seen work and not work with the hundreds of agents we have […]Read More

FHA Reminders: Attached PUDs, Refi’s to 96.5%; Cash-out Refi to 85%

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We're sharing four quick but important reminders about FHA Financing. 1) FHA financing is available for all Planned Unit Developments (PUDs) or "townhomes," even if they are attached and in large complexes that look like condos. 2) Borrowers can refinance into 96.5% loan-to-value FHA financing as long as they qualify and it is "rate and term" (not cash-out). Many people think FHA is only for purchases. 3). FHA rates are low, guidelines are very flexible, and loan limits are high. It is important to never discount the FHA option.Read More

Why 5% Down Conventional Beats FHA Under $417K

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We often recommend 5% down conventional loans over FHA for qualified buyers under $417K. Conventional loans have lower mortgage insurance costs, no upfront MI fee, and more flexible property options. Sellers also prefer conventional financing. FHA may still be necessary for buyers with limited cash, credit issues, or high debt ratios.Read More

FHA Not ONLY For 1st Time Buyers; Who Uses FHA Financing?

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FHA loans aren’t just for first-time buyers—they’re available to anyone who doesn’t currently have an FHA loan. With a low 3.5% down payment requirement and flexible credit guidelines, FHA financing remains a top choice for borrowers with limited cash or higher debt ratios.Read More