FHA From Conventional

[Jameson Waltz]

I am in the middle of selling my current home and buying my new home. Things have been going pretty smooth aside from the fact that the buyers side have been a little more than needy in regards to this home. My home is brand new. Just over a year old. Theyre asking for more coverage on the appliances, and some other stuff as well. It still has structural and electrical warranties in place. They requested a Survey on the home which I have never had asked. I think these folks are paranoid. We are 13 days from closing. They decided today to switch from conventional loan to FHA. My agent is pretty pissed, and also lacking in Loan types info in deep detail she is also concerned. Should I be concerned about this? Is this a troubling scenario? We have already done inspection and fixed everything they asked and the appraisal was set for this up coming Monday. Thoughts?

[Joe Splitrock]

@Jameson Waltz when you say more coverage, I assume you mean some type of warranties. I would reject anything additional on a house that new. The survey is fairly common and is usually required by either conventional or FHA. Survey should be no issue at all. It just makes sure that there are no encroachments on the property line. For example if your neighbor put a fence or their driveway over the property line. It can be a big issue if part of the structure is over the property line, but that generally only happens on very old properties. A new house should have no issues. Odds are good the lot was surveyed before you built on it and may even have metal post markers still visible. Again, a survey is required by the lender so nothing to dispute or fight.

As far as FHA, the biggest difference is the property will need to pass inspection. Probably not a big deal on a house that is one year old because everything should be up to code. That being said, they likely wrote the offer with conventional financing specified, so changing now is modifying the contract. You can refuse the change and force them to perform on the original agreement. The risk I see is if FHA comes back with more repairs or expenses for you. Maybe you can get something in writing stating that the change to FHA means buyer agrees not to ask for additional repairs or concessions. Changing the contract should only happen if you both sign paperwork.