Selling FHA or VA

Your mother, your brother, your best friend – maybe even you – could have a story to tell about selling to a buyer who financed through an FHA or VA loan.

It used to be that sellers regarded government-backed loans like those as less than desirable compared to conventional loans. If a seller learned that a buyer was going FHA or VA on his/her loan, sometimes the deal ended quickly. That's because FHA and VA loans had a reputation for longer processing, less qualified applicants, and more paperwork and hassles. FHA and VA buyers also were thought to want more from the seller – like points and/or closing costs.

Today, nothing could be further from the truth!

FHA and VA loans are processed with the same speed and efficiencies as conventional loans, with simplified paperwork and streamlined procedures. In fact, in today's robust housing market, many prospective buyers are seeking financing through FHA and VA loans so it's likely you'll run across just such a buyer.

Real Living recommends that you, as a seller, strongly consider the offers of all prospective buyers. Bear in mind that each offer you receive will need to be negotiated.

While the requirements of both FHA and VA loans mandate a home inspection, most home buyers are already likely to request a private home inspection anyway. And, even if the buyer asks you to pay some costs on their behalf, your Real Living agent can work to negotiate a higher sale price to offset the costs.

FHA loans are insured
The federal government insures FHA loans and for some first-time homebuyers, this type of financing is their best option. FHA loans allow buyers to enter the housing market with a lower down payment than conventional lenders allow. These loans offer more flexible underwriting guidelines than even conventional lenders.

VA loans are guaranteed
The Veteran's Administration guarantees a VA loan, meaning the lender is protected against borrower default. As such, this guarantee encourages lenders to offer honorably discharged veterans and active military personnel in the U.S. armed forces (Reserves and National Guard, too) more favorable terms. No down payment is required for a VA loan, and closing costs may be a gift. Like FHA loans, VA loans offer flexible underwriting guidelines.

We suggest that you open your options to the broadest possible market of potential buyers and consider each offer on its individual merit. Your Real Living listing agent will offer sound advice throughout the selling process. Then perhaps you'll have your own FHA or VA story to tell – the one that got your house to SOLD!