pro- low down payment

con- lifetime of pmi

Are there advantages?

3.5% down

vs.

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

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

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.

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.

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.

Fred,

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

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

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.

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

Low down payment and lower credit requirements are pros.

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

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

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