Sellers agent is against using an FHA loan

[Joshua King]

Hi First time buyer here. Im giving an initial offer on a duplex and my agent says the seller is against me using an FHA loan. According to the sellers agent the house won't pass due to paint chips. Has anybody worked with an FHA inspection/ Appraisal and can shed some light on what that looks like?

[Matthew Irish-Jones]

@Joshua King an FHA appraisal stays with the home for a period of time. If the seller pulls the home off market to fail an FHA inspection he has lost time and potentially money and has an appraisal that will stick up the home.

He doesn’t want to fix the paint because he doesn’t think he has to. He believes he will get a conventional or cash offer that is either with no inspection or he feels he will be able to negotiate through it.

There is no negotiation (typically) with an FHA inspection. Issues have to be resolved. Sometimes the buyer will handle the issues but in this situation it sounds like the seller doesn't want to risk it.