From your experience....

[Ravi P.]

my question is do FHA appraisals more conservative than conventional mortgages? Here is my dilemma? I have a condo flip that we have listed last week and we have an offer. the issue that I am going to run into is that all the properties in ghe complex, that have sold in the last 2 years were all distressed. 3 foreclosures, and another 1 was an arms length transaction that was aunt selling to niece. Finally, my purchase which was a short sale and now listed for sale. all units sold between $105-123k. I did a complete cosmetic rehab. new bath and kitchen, paint, flooring and recessed lighting. I listed at $175k and there is another condo listed for $159k that only has new paint and appliances, the $159k condo started at $169 and had an offer for $163k, but the sale fell through since there HOA has a rental restriction. I received an offer for $160k and need to counter. it seems like it will be hard to appraise at $160k so for asking for anymore would be wishful thinking. but there is the possibility the property may appraise out. to make matters worse they will be financing with FHA type loan. I know I am trying to push the market but from your experiance, do FHA loans come in tighter than standard loans? Thanks for any feedback.

[Jeff Dulla]

@Ravi P. FHA versus Fannie/Freddie is no indication of value. FHA does not mean the value will come in any lower. However - to do an FHA loan in a condo building, the entire building must be approved by FHA. Is that the case for your building?