Fact: FHA buyers are some of the most committed, qualified buyers around

For many first time buyers, getting an FHA loan is the only way to get into a house. With down payment options as low as 3.5%, the desirability is at an all-time high for buyers…and an all-time low for sellers being wooed by all-cash or high-down payment offers.

But why the stigma? For starters, sellers often feel that an FHA buyer is less serious and qualified to buy. This is especially true with homes in high demand areas. In my opinion, all this stigma is nonsense! Sellers, this one goes out to you:

– FHA buyers are some of the most scrutinized borrowers with the cleanest files
– Buyers tend to be younger and just starting out – why hold that against them?
– Money is money whether it comes mostly from a loan or down payment
– Closing an FHA loan under 30 days is pretty standard
– FHA buyers are fiercely committed buyers because they have more to overcome
– A high down payment isn’t less risky than an FHA offer

Yes, shocking but true. No matter what type of loan or down payment, the house still needs to go through inspections, appraise and go through underwriting. This is true if the buyer has 50% down or 3.5% down. Ultimately, if I was the seller, I’d focus on terms. The more favorable the terms are for the seller, the likelier that seller will close with that offer.

Buyers, what can you do if you’re exploring oft-maligned FHA financing? The most important tip I can give is to get a pre-approval from a lender with a stellar reputation. If you’re looking to buy anywhere on the Eastside, I highly recommend Eddie Ajamian (Franklin Loan Center, Pasadena).