Are Your FHA Offers Getting REJECTED?
It’s no secret…THE MARKET IS HOT! And with a Hot Market comes multiple offers and competition. In order have a competitive FHA offer, you may need to get creative – that’s why we’re here to help!
Why Your FHA Offers May Be Rejected
In a multiple offer situation, sellers will oftentimes sift through offers and automatically throw some out. These offers are usually asking for closing costs, low balling, or government loans (yes – this includes FHA, VA, USDA/RD). This can be frustrating for both the buyer and the agents involved. Perhaps the seller feels they will not net the amount they want, or that the borrower is less qualified. Now, in my experience as a loan originator, I know this is not always true. I have seen plenty of FHA borrowers that I felt had stronger client profiles than some Conventional ones. The truth is, sellers want to see Cash or Conventional offers over anything else.
However, this can be a problem with buyers that put in several FHA offers and constantly get beat out. You see, not all FHA buyers are using FHA because they have bad credit. Watch this video for some examples.
Oftentimes, we see clients that feel their household income can support a particular house payment, but for one reason or another, one of the household members cannot be on the loan (examples: bad credit, debts, past bankruptcy, foreclosure, etc.). The HomeReady Mortgage by Fannie Mae offers options to allow the use of household income as a compensating factor even if they are not on the mortgage note itself. Check out these frequently asked questions FAQ and Fact Sheet for more info.
Let Us Help You!
This may be a great opportunity for you or your clients to switch from FHA offers to Conventional. If you are pre-approved FHA or have been told by a lender in the past that you could only go FHA, contact our team today at www.GrantHomeLoans.com or give me a call at 616-304-4164.
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25 Ionia Ave SW, STE 501, Grand Raids, MI 49503