Selling our house has been a nightmare and a half. We’re on offer #5 and now at risk of them walking because they want to switch from a conventional to an FHA loan just a week before the original closing date. We respectfully asked them to continue with the conventional loan, or if they need to pursue FHA that they release the earnest money if they can’t close by the end of the month. They canceled the deal early this afternoon. Better to know now than in a few weeks. How would you politely tell a buyer to kick rocks and proceed with the originally offered conventional loan? Should we just consider this deal dead and steel ourselves for going back on the market again? Here’s why our first four deals fell through: 1. Didn’t like solar panels, walked when he learned they wouldn’t be taken off on our dime. 2. Buyers remorse—didn’t even do an inspection. 3. Completed inspection, walked for buyers remorse. Pretty sure this was a first-time homebuyer and the inspector was using some serious scare-tactics. 4. Cash offer, as-is, 2 week closing, asked for a 40k credit for ‘asbestos’ insulation in the attic. Fun fact, it was tested and was just trace amounts which isn’t considered an asbestos containing material. We denied the credit and they walked within 4 minutes of attorney letter stating such. Current offer now trying to switch finance methods.
Why do they want to change? They might be having trouble qualifying for the conventional loan. Not that it matters to you, but it could be their situation.
Valentine said:
Why do they want to change? They might be having trouble qualifying for the conventional loan. Not that it matters to you, but it could be their situation.
That’s a good point. So, what do you think they should do? Just stick with what they had?
I can’t blame them. 8% is terrible. If you agree, demand a rush on the appraisal and close in 14 days. Most of the time, I can get files done in 10 days, but sometimes it takes finesse.
Bay said:
I can’t blame them. 8% is terrible. If you agree, demand a rush on the appraisal and close in 14 days. Most of the time, I can get files done in 10 days, but sometimes it takes finesse.
That sounds reasonable. How fast does the appraisal typically go?
@Weston
They’ll check to ensure the work is done. Do you have issues that wouldn’t pass FHA?
Something feels off. Many lenders have rates under 8%, so if they’re ‘well-qualified’ this shouldn’t be an issue. FHA rates are typically lower than conventional mortgages.
Caiden said:
Something feels off. Many lenders have rates under 8%, so if they’re ‘well-qualified’ this shouldn’t be an issue. FHA rates are typically lower than conventional mortgages.
I agree, seems sketchy. If you say no, you might end up back on the market and finding a new buyer.
@Blake
Exactly, the longer it stays on the market, the more buyers will hesitate.
I’d ask how long they think it would take to get the new loan approved. FHA requires specific appraisals, not just for value but basic safety.
Abi said:
I’d ask how long they think it would take to get the new loan approved. FHA requires specific appraisals, not just for value but basic safety.
Yeah, and if you’re not familiar with FHA, it can bring up red flags.
Thanks for the thoughts, everyone. It’s tough balancing limited inventory and just wanting this whole process to be over. I worry about the reputation of being contingent then active then contingent again.
@Beckett
That’s totally understandable. It can make your house seem less desirable.
Valentine said:
@Beckett
That’s totally understandable. It can make your house seem less desirable.
For sure, the longer it takes, the more buyers will be spooked.