With 30 percent of today’s homebuyers using FHA mortgage loans, it is important to capture this buyer pool when marketing your home for sale. First time homebuyers gravitate toward using FHA loans especially because it allows them to make a down payment of only 3.5% of the purchase price. Here are some other FHA facts to know that will help you get your home FHA ready:
- It is important to learn the FHA lending limits in your area. In Pinellas and Hillsborough counties, FHA will insure a mortgage of up to $314,827 on a single family home. For a duplex, FHA will insure a mortgage of up to $403,125.
- Buyers will want a home inspection, regardless of the type of mortgage loan they plan on getting. As the seller, you will need to provide an FHA buyer with a form that details what a home inspection can reveal, and how home inspections are different from appraisals.
- As a seller, you need to be prepared to rectify any problems that appear on the home inspection, otherwise, FHA will not give approval until serious defects are repaired, such as a roof leak, mold, structural damage, or any interior or exterior paint that could contain lead and predates 1978.
- Although the buyer can choose his own appraiser to assess your home, FHA only allows inspections by appraisers that are FHA approved. As a seller, it is recommended that you assist the buyer’s lender’s appraiser by providing easy access to crawl spaces and other areas, which the appraiser will most likely have to photograph.
- For all FHA loans, the seller and other interested parties can contribute up to 6% of the sales price or toward closing costs, prepaid expenses, discount points, and other financing concessions.
- If you are selling a condo, you will need to find out if your condo is FHA approved for mortgages. To learn this information, visit HUD.gov. You will get the best results by searching by zip code. There are rules that apply in order for condo associations to qualify for FHA approval. These rules include restrictions on the percentage of unit owners that are late on association fees. FHA usually won’t insure loans in condo associations where that percentage exceeds 15%. Other factors like insurances, cash reserves, and how many units are owner-occupied play a part in whether a condo association becomes FHA approved. If your condo does not meet all of the requirements, there are some lenders who will provide FHA waivers. You can discuss this with your agent who can help you identify some of those lenders if this becomes necessary.
When you are ready to sell your home, give a NextHome SunRaye agent a call. Our team is eager to help you get your home FHA ready and market it to all qualified buyers. Partnering with a NextHome SunRaye Realty expert will ensure the prompt sale of your home and a maximum return on your investment.