FHA Loan Requirements for Sellers
When using an FHA secured loan on a property, the buyer and seller of the property must adhere to certain rules. A truly motivated seller can use the tools that FHA provides in order to assist in facilitating a successful transaction on her property.
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Seller Contributions
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The seller can contribute up to 6 percent of the sales price toward a buyer's closing costs. This comes out of the proceeds of the sale, but the seller can use this as a negotiating tool in order to help a home sell.
Seller Repairs
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The seller is responsible for major repairs to the property. However, in place of incurring massive costs for expensive items, the seller can purchase a home service plan and pay a small deductible for each repair.
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Home Service Plan
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The seller can also transfer a home service plan to a buyer of her property as an incentive to purchase. Most service plans cost less than $400.00 per year, and these plans cover all major items in a home.
Non-realty Items
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Sellers can also include non-realty items in a FHA transaction that can be added to the appraised value of a property. Common examples of additions are major appliances such as refrigerators or washers and dryers.
Interest Rate Buydown
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The seller can contribute funds to buying the interest rate down for a buyer to his property. While this does come at a cost, to the seller, the cost may still be less than having to take a reduced sale price on the property.
Expert Insight
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Sellers willing to research FHA financing options can find themselves netting more money off of the sale of their property than with some other loan alternatives. Speak to a real estate professional about the benefits of offering FHA financing.
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