FHA for Probate sale

[Drew Lamb]

Hello everybody, I was just wondering if it is possible to obtain an FHA loan for a house that is in Probate? Thank You

[Chris Mason]

Sure, why not? 

The biggest problem with probate is that there are typically a bunch of sellers, not a single person or a couple, that are never on the same page. 

Sally wants top dollar, John wants a quick close, Jennifer wants a family with a dog to purchase it, Bill wants a non-contingent offer, Rose thinks the market gives a crap about her childhood memories there and should value the home accordingly, and the listing agent just says "sure, you can have ALL of that!" to the batch of them, which obviously isn't generally going to happen, and then this wonky mix of unrealistic expectations ends up on you and your agent's lap as the buyer. 

To make it even more fun, there is often a single family member that doesn't actually want to sell (but his signature is required), wants to 'keep it in the family,' but doesn't have the credit/assets/income to actually make that happen, so he might just be difficult while entertaining his delusions. The second you are one day past a deadline specified on your contract, guess what this guy does? He insists that you be bounced out of contract and another buyer be found, just so he can 'keep it in the family' & delay the inevitable for another month. Make sure you have a team lined up that can keep to the schedule, so this one family member doesn't have that pretext to drop you for another buyer.