Sunday, June 13, 2010

Help - I'm FHA and having trouble landing a house!

This is not an uncommon problem in the Burbank/Los Angeles area. In the grand scheme of things, when a homebuyer is looking at offers, cash buyers are most preferred, followed by the large down payment crowd, next are the high FICO score group, then lastly the FHA people.

Unfair? Absolutely, but sellers all look for the sure thing with the least amount of problems. Think of how you would react to the before mentioned offers. If you have an all cash offer and an FHA buyer before you, you know that with the cash offer you will have less worries about appraisals, code requirements, or the buyer's ability to get their loan and close on time. Basically speaking, the higher the risk - the more concern a seller will have with potential buyers.

So how does an FHA buyer get a home then? I hear this from frustrated FHA buyers all the time. They tell me that they have been battling for months writing offers only to be beaten out each time by cash buyers. My answer is simple. Get an agent who is responsive and proactive. Jill and I work with FHA buyers all the time and have not had much problems finding and closing deals for them - mainly because we focus on working quickly and smartly.

Time is of the essence when finding a home for an FHA client. Also, one needs to be smart in the approach. One can not low-ball a competitively priced property that is new to the market and expect favorable returns. If you like the home and you are FHA - you need to go in quickly with as strong an offer as you are comfortable submitting. The goal is to get the seller to accept your offer before others come in. That is the key - plain and simple. Know the competition and play to win.

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