Posted on: 13th Jun, 2010 05:44 pm
Hypothetical. The asking price on a property is $150,000. An FHA buyer agrees, but shortly before closing the appraisal comes in at $140,000. Seller is not willing to reduce price, and buyer agrees to pay seller the $10,000 difference to meet the sale price. DOES THIS SCENARIO POSE A PROBLEM FOR AN FHA LOAN? CONVENTIONAL? THANKS!
Welcome fleischmanabe,
It doesn't make any sense to buy a property worth $140,000 for $150,000. Rather than going for that property, the buyer should look out for similar properties where the seller is ready to reduce the price. As far as lenders are concerned, they would give you a loan depending upon the value of the property. It may get difficult for you to get a loan for a property which is valued lesser than the asking price.
It doesn't make any sense to buy a property worth $140,000 for $150,000. Rather than going for that property, the buyer should look out for similar properties where the seller is ready to reduce the price. As far as lenders are concerned, they would give you a loan depending upon the value of the property. It may get difficult for you to get a loan for a property which is valued lesser than the asking price.