Many home buyers in Menifee, CA, are using FHA loans to buy houses for sale. These loans offer the chance at home ownership to military veterans and others who may have more difficulty securing a loan from a private lender. FHA loan users must have a cash down payment and must have credit scores in the high 500’s. When a buyer with FHA approval makes an offer on your Menifee, CA, home, keep these tips in mind.
To protect buyers from having to spend a lot of money on unforeseen repairs, FHA loans have moderate to high standards for the condition of the property. An FHA inspector will ensure that the home meets those standards. Sellers will need to make any repairs required under the loan’s terms.
Paying the Buyer’s Closing Costs
To advance a real estate transaction, some sellers will offer to pay part or even all of the buyer’s closing costs. Under the FHA loan system, sellers can only pay 6 percent of the sale price in closing costs. This can help sellers to enjoy more money from the transaction.
The FHA loan requires that only an FHA-approved lender be used by the buyer. This approval process can take more time. Sellers may ask for documentation from buyers, such as the lender’s pre-approval.