Why Sellers Are Not Accepting FHA

[Ryan DiCanio]

Hey Bigger Pockets Community,

I am running into the issue where I find properties through my analysis that I am interested in, but the seller is not accepting FHA loans from buyers. I have 2 questions regarding this:

1. Why does it matter to the seller whether I have an FHA or Conventional loan?

2. What can I do to mitigate the situation other than trying to switch to a conventional loan?

Any and all thoughts would be appreciated!

[Derrick Dill]

1. FHA there is a longer closing time (usually at least 45 days), there are also mandatory FHA inspections. Most buyers don't want the extra time and to fix whatever issues that FHA inspection brings about. 3.5% down subjectively some sellers don't like as much since less skin in the game.

2. Need a lender who can guarantee you lowest time possible for closing. Get rid of as many contingencies as possible. More $ down or over list