The Federal Housing Administration (FHA) offers government-sponsored loans to help buyers in certain circumstances be approved for the mortgage that they need.
Loans through FHA-approved lenders can help buyers get loans with low down payments and favorable interest rates.
If you’re interested in selling your home, you should consider selling to an FHA buyer. Selling your home to an FHA buyer could greatly expand the list of potential buyers who are interested in your home. This could mean selling your home quickly at the price you want.
However, in order to sell to FHA buyers, your home needs to meet certain conditions. Let’s take a look at how you can prepare to sell your home to an FHA buyer.
Required Repairs
If you plan to sell your home to an FHA buyer, the Federal Housing Administration will tell you what repairs you have to make. Keep in mind that you will be responsible for making these repairs.
Some repairs you may be required to make include:
- Broken HVAC Systems
- Peeling Paint on Home Built Before 1978
- Plumbing Issues
- Broken Kitchen Appliances
- Pest Infestations
- Structural Issues
- Roof Repair
- Attic Repair
- Standing Water
- Damaged Water Heater
This is not an all-inclusive list of repairs you may need to make. The FHA will instruct you on any necessary repairs or issues that need to be addressed before selling.
As you can see, the FHA’s primary concern is safety. Many of the items on this list are things that you should address when selling to any buyer. Leaving these issues unaddressed can pose safety issues to buyers.
Since the FHA is a government-sponsored program, they make the extra effort to ensure that buyers are protected from any dangers presented by the condition of your home.
If you do not have the money to pay for these repairs, then selling to an FHA buyer may not be possible.
Unnecessary Repairs
There are additional repairs that may or may not be required. These are usually less severe and won’t necessarily prohibit you from selling to an FHA buyer.
Some of these include:
- Peeling Paint on Homes Built After 1978
- Cracked Window/Glass
- Damaged Screens
- Minor Plumbing Issues
- Damaged Walls
- Missing Handrails
These are issues that may not pose an immediate safety issue, but, in some cases, might still need to be addressed.
However, even if these repairs are not necessary, you should still consider addressing them. Making renovations like these could potentially add value to your home.
Second Appraisal
Lastly, real estate investors and home flippers should be aware that they may need to get a second appraisal.
If you have owned the property for less than 90 days and are expected to make a profit of over 20%, the FHA will require you to get two appraisals, and you will have to pay for one of them. This is according to BiggerPockets.
This likely won’t be a big deal to sellers; however, it is something to keep in mind if you’re looking to flip a house quickly.
Selling to an FHA buyer can greatly increase your pool of potential buyers. Before selling to these buyers, though, you may be required to make many significant improvements in order to meet FHA requirements.
The post How To Sell Your House To An FHA Buyer and What You Need To Repair appeared first on National Cash Offer.
source https://nationalcashoffer.com/how-to-sell-your-house-to-an-fha-buyer-and-what-you-need-to-repair/
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