Talk of The Villages Florida - View Single Post - Mortgage / New Home
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Old 12-22-2020, 04:17 PM
John41
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Quote:
Originally Posted by BobsBurgers View Post
Is it legal for the villages to refuse finalizing the closing of a new home based on an FHA mortgage? Especially when this this was never disclosed prior and we are 2 weeks from the date with everything packed and ready to go!
Looks like they can

Warning
Most prospective buyers with FHA-insured mortgages check whether sellers will accept such financing beforehand. Homes listed in the Multiple Listing Service will also always note whether the seller is willing to consider such offers. In addition, owners selling their homes are free to choose just what sort of offers based on mortgage financing they will accept.

Considerations
There's no law that can compel a seller to accept FHA financing, though sellers artificially limit their buyer pool by doing so. Buyers, though, can help their cause by agreeing to an "as is" appraisal, for one. They might also consider asking for less in seller contributions to help with closing costs. Currently, they're limited to 3 percent of the sale price. It also helps when sellers understand that the FHA has noticeably streamlined the paperwork process.