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Rainer
308,608
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

pro- low down payment

con- lifetime of pmi

Apr 14, 2020 02:40 PM
Ambassador
5,752,707
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Are there advantages?

Apr 14, 2020 05:12 PM
Rainmaker
1,357,492
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

3.5% down

vs.

Narrower inventory, seller predujice and stricter appraisals and ridiculous PMI for life.

Apr 14, 2020 10:51 PM
Rainmaker
1,430,221
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I've only done one FHA purchase and zero FHA sales.  Non-conventional are almost unheard of out here.

Apr 14, 2020 09:33 PM
Ambassador
2,783,261
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
St. George Utah Area Residential Sales Agent

It is a WIN-WIn for both parties as long as the seller's property is in great condition with no major repairs to be done prior to closing and recording.

Apr 14, 2020 01:48 PM
Rainmaker
1,766,546
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

They are alot better now for the seller. In our area no more termite inspections & the appraisals usually come out ok.

Buyer is stuck with perpetual mortgage insurance which is what happens when you can't save more than 3.5% for a down payment.

You have to watch out for peeling paint & a bad roof. That seems to be their #1 point.

Apr 14, 2020 01:46 PM
Ambassador
4,552,650
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Pros for buyers - 3.5% down. 

Cons for buyers - PMI for many years to come.

Cons for sellers - Somewhat more rigid inspections, althought they seem to have relaxed a bit over the years; more rigid appraisals.

Apr 14, 2020 09:37 PM
Rainmaker
5,767,466
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Fred,

Not my expertise, but I learned something from the comments, and that is good.  A

Apr 14, 2020 04:13 PM
Rainmaker
3,384,351
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

For the buyer it woudl be getting a mortgage where they would not without it. Lower down payment, lower qualifications and seller can pay closing costs. For the seller, they get to get beat up on the appraisal, get to fix their home, and could have more buyers if they accept offers with fha. In reality, you have to talk about fha with the seller to make sure the home is in good condition to pass the appraisal. If not, fha may not be an option with out a great cost

Apr 15, 2020 05:32 AM
Ambassador
3,077,090
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

well right now if people need a break on making their mortgage payments... FHA backed loans offer 3 months off, added to the END of the loan with NO penalty for it.

Apr 16, 2020 09:39 PM
Rainmaker
695,297
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

FHA is good for those that can't qualify for a conventional loan. Sellers benefit from having increased potential offers.

Apr 15, 2020 02:11 PM
Rainmaker
1,023,662
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Low down payment and lower credit requirements are pros.

Credit insurance makes it work but is a negative at the same time.

Apr 15, 2020 09:11 AM
Rainmaker
7,034,179
Roy Kelley
Retired - Gaithersburg, MD

The benefits are primarily for the buyer. Low down payment and liberal underwriting for credit.

Apr 15, 2020 08:22 AM
Rainmaker
2,079,021
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I don't remember. Sorry Fred Griffin Tallahassee Real Estate 

Apr 15, 2020 07:27 AM