Virginia Seller: Make your home FHA loan Friendly
A great amount of the homes sold in past couple years in the
Northern Virginia area have been loaned through FHA insured loans where
buyers with good credit can purchase a home with min. 3.5% downpayment.
Since FHA conforming loan limit in Northern Virginia is $729K whether
you are in the market to sell single family, townhome or a condo you
want to attract buyers from all walks of life.
Here the list of things you can do to attract your loan for buyers with FHA loan:
1. Condo Owner:
you own a condo check with your condo management on current percentage
of investor versus owner ration. FHA requires no less than 51%. Also FHA
won't insure if 15% of more unit owners are late on their monthly dues.
Knowing your condo building is FHA approved you can market with tag
line "FHA Approved Condo" . Check with a lender and/or your condo
association before you market or accept FHA loan contract.
2. FHA Inspection:
FHA requires the property inspection for healthy and safe before they
will insure it. If you are unsure about the repairs or inspection get a
pre-listing home inspection done by a qualified inspector. If you
discover any major repairs like roof leaks or mold issues get a licensed
contractor to repair or replace before listing your home. This will
avoid any unknown major repair or buyer to walk out of the contract.
Get your home ready for the appraisal. FHA appraiser requires all
utilities to be ON and easy access to storage, crawl space, attics and
other places in the home. De-clutter or store away stuff this will help
appraiser with true value of the home.
4. Closing cost:
FHA loan borrower can request seller subsidy for upto 6%. There has
been a lot of buzz about reducing the seller subsidy to upto 3%. For now
you can offer as a seller incentive for FHA buyer towards closing cost.
Have the buyer check with the lender on the percentage they can request
closing cost assistance.
Work with your Virginia Realtor
to maximize your exposure to the market and get the home sold in any market.