If you’re considering selling your home, you’ll need to appeal to as many potential buyers as possible to ensure a successful sale. Two types of buyers that you can’t afford to overlook are those who are seeking a loan through the Federal Housing Administration (FHA) or the Veterans Affairs (VA) lenders. These buyers can make up a significant portion of the market, and their loan requirements can be strict and challenging to meet.
Special Loan Requirements
FHA and VA loans are designed to make it easier for individuals and families to purchase homes, especially for those who might not qualify for traditional financing. These loans have strict property requirements that homes must meet before lenders can approve them for the loan. However, borrowers get the benefit of lower down payments and more flexible credit requirements in exchange for meeting these criteria.
To meet these requirements, sellers may need to invest significant time and money into repairs and upgrades to their property before it will qualify for an FHA for a VA loan. Some of the common issues that can arise include issues with the foundation, roof, electrical system, or plumbing, as well as problems with peeling paint or mold. In some cases, these issues can be expensive to fix and may require a contractor’s assistance.
More Difficult Lenders
Working with FHA or VA lenders can also be challenging, as these institutions often have strict timelines and requirements that must be met to ensure loan approval. For example, the home must be appraised by a qualified inspector, and both FHA and VA have their own appraisers, who can be pickier than regular appraisers. Also, any necessary repairs or upgrades must be completed within a certain timeframe. If borrowers don’t meet these deadlines, lenders may deny the loan, and the sale could fall through.
Avoid the Lender Difficulties Altogether!
Many homeowners find that working with a real estate investor can be a more attractive option in light of these challenges. Real estate investors buy in cash, and cash buyers are not beholden to the rules and regulations of FHA and VA loans. They can often make an offer and close on the sale much more quickly than traditional buyers. This option can be especially helpful for those who need to sell their property quickly. It is also beneficial for those who lack the time or resources to invest in repairs and upgrades.
If you’re considering selling your home and it has any issues that could cause a problem with FHA or VA loans, or if you just want to avoid the hassle and potential of the sale falling through at the last minute, contact me today and get a free, no-obligation offer.