Here are five ways you can make sure your home is FHA-friendly to increase your chances of selling:
The FHA’s national low-cost area mortgage limits for 2019 are set at 65 percent of the national conforming limit of $484,350 (for a one-unit property). In high-cost areas, the housing agency’s loan limit “ceiling” was increased to $726,525, while its “floor limit” is set to $314,827.
Before you take further steps to make your home appealing to FHA buyers, check to see if your home’s listed price falls within the FHA lending limits for your area. If the market value of your home falls within the pricing guideline for your area, then you’re already one step ahead. If your home’s price is just above the loan limit, see if you can lower it. But if it’s far above the limit, your home may not be entirely available for FHA buyers. Unless a buyer can come up with the difference between the loan maximum and the selling price, they will not consider looking at your property.
Just remember that a home inspection differs from a home appraisal. Home inspections evaluate the condition of your home to ensure that it meets safety, health, and building laws. So remember that just because your home passes the appraisal, it does not automatically mean that it will pass the home inspection.
While you are not obliged to help, it can be helpful so you can close a deal faster with an FHA buyer. By offering to pay for some of the buyer’s closing costs, you can make your home stand apart from the crowd, especially if you are selling in a buyer’s market. Just keep in mind that your aim is to achieve your net goal by closing and be able to hand over your home to a reliable buyer.
