Why would FHA not approve a home?
If the appraisal “comes in low” (meaning the house appraises for less than the purchase price), then the FHA probably won’t approve the home for financing.
Depending on the situation, the homeowner /seller might be willing to reduce the sale price to reflect the appraisal amount..
Why do sellers hate FHA loans?
Sellers often believe, too, that buyers who need a lower down payment might not be able to afford any home repairs. Sellers worry that FHA buyers because of their lack of cash might be more willing to walk away from an offer if the home inspection turns up any problems. For FHA buyers, these are both cause for concern.
What disqualifies a house from FHA?
Structure: The overall structure of the property must be in good enough condition to keep its occupants safe. This means severe structural damage, leakage, dampness, decay or termite damage can cause the property to fail inspection. In such a case, repairs must be made in order for the FHA loan to move forward.
Is there a minimum income for FHA loan?
There is no minimum or maximum salary you can earn that will qualify you for or prevent you from getting an FHA-insured mortgage. However, you must: Have at least two established credit accounts. … Account for cash gifts that help with the down payment.
Can I qualify for FHA if I already own a home?
While first-time homebuyers make up the largest share of FHA loans, about 17% of new loans go to people who have already owned a home, according to the U.S. Department of Housing and Urban Development. Put another way: Anyone can apply for an FHA loan, no matter how many homes they’ve owned in the past.