In a HOT market…
There are many benefits of using an FHA loan to buy a house but it’s not always acceptable to a seller. FHA loans make homeownership possible and easier for low-to-moderate-income borrowers who may not otherwise be able to get financing because of a lack of or a bad credit score.
Sellers will shy away from FHA loans in a HOT market for one major reason. Stricter Inspections!
In a HOT market, sellers are receiving multiple, competing offers. FHA loans require a HUD (Department of Housing & Urban Development) – approved appraiser who will visit the property to ensure it meets all program requirements.
If the home is appraised for less than the agreed-upon price, the seller must reduce the selling price to match the appraised price, or the deal will fall through.
When listing, speak with your agent about which loans make the most sense for your property.