FHA insured mortgages have received a stigma in past years for creating a challenging transaction. Sellers seem to prefer conventional financing, even subprime financing, over an offer with an approved FHA buyer.
The Federal Housing Administration was established in the 1930s following the Great Depression. These innovative low down payment loans were intended to help more people become home owners with intentions of creating more stability in neighborhoods. FHA insured mortgages are woven into American history.
Here are some reasons you,as a Seller, should consider an offer with FHA financing.
- Preapproved FHA buyers are full documentation loans. These buyers have been scrutinized and have provided income and asset documentation in order to have a true preapproval.
- FHA mortgages are not going to “disappear