The answer to your question you pose in comment 34 is in the HUD manual, which you should have right there in your office.

Not to get off topic from the original post, but I’ve wondered why FHA has this standard, or more importantly, why VA and conforming DON’T have this same standard?

I’ve found it very satisfying that as an agent I have a fiduciary responsibility to my clients, and very troubling that originators don’t. Doesn’t mean that the originator can’t choose to take a findicuiary responsibility for their client, but they aren’t required to.

Being both a Realtor and a mortgage banker is not allowed if you want to originate FHA loans per HUD.

Good luck with that.

Being both a Realtor and mortgage banker, I believe pre-approved FHA buyers are gold. Though there have been minor changes in FHA guidelines and pricing, compared to the tumultuous and gut-wrenching shift we’ve seen in conforming guidelines and comforming PMI in the last 4 months, FHA programs are rock solid.

Pre-approved means they’ve been scrutinized, scrutinized, scrutinized and I feel much more confident in 1) the FHA program the buyer is qualified for hasn’t changed and 2) there are more options to handle problems between contract and closing. I had 1 client purchasing a Spokane home on an FHA mortgage who changed careers between contract and close and we didn’t have a problem!

I lived and breathed FHA in the 1980’s – most of us did. I loved FHA, it was a great product for getting buyers into homes. And, I still have some of those same buyers living in those same homes (time for them to call me, don’t cha think?!).

There was one particular appraiser we dreaded, since back then, whoever was next up in line to get the appraisal order was the one who did it. This appraiser just loved work orders! But, other than that one person, I have never found FHA to be totally unreasonable. And, on the occasion, such as the appraiser calling for a new roof – if the licensed, bonded building inspector says the roof has 5+ years left, I’ve had FHA not require the new roof.

Lender-required work orders are always annoying, but they are going to be more of a fact of life than in the last ten years or so.

Rhonda, I don’t remember if we ever got an answer to this question — once a house has an FHA appraisal on it – does that ’stick’ with the property for 6 months, even if that sale didn’t go together? That used to be an occasional problem.

As agents, I think we’re in a new era. It is going to be critical for listing agents and buyers agents to make sure the buyers pre-approval is through a very strong lender, and for listing agents who aren’t impressed once talking to buyers lender, to consider requiring a buyer to make a change to a lender of sellers choice (or at minimum be pre-approved by same). I know it is difficult to convince someone that their choice of lenders may not be best, but you want a sale that can close, not one that falls apart.

Every single time that I’ve had lender related problems has been when a buyer has worked with an unknown quantity lender. Before any mutual acceptance, call the lender, make sure you feel they are experts, and if not – make some changes on who everyone is going to be working with.