Homebuyers with FHA, VA Financing Disadvantaged in Market - Columbus Ohio Real Estate | Buyer's Resource Realty Services

Homebuyers with FHA, VA Financing Disadvantaged in Market

FHA VA Homebuyer disadvantageMany Central Ohio homeowners bought their first property with an FHA or VA mortgage. For decades, these government-backed mortgages made home financing accessible to buyers who could not qualify for a Conventional mortgage.

But in today’s competitive real estate market, home sellers may have developed a bias against FHA and VA buyers.

This is suggested in a “Realtors Confidence Index” survey by the National Association of REALTORS®, conducted in May 2021. According to responding agents, only about 30% of home sellers are willing to accept purchase offers involving FHA or VA mortgages.

As with all surveys, interpreting the responses can be subjective. It is possible that listing agents themselves misunderstand FHA and VA financing, and present these purchase offers with less enthusiasm to their clients.

It is also true that market conditions make it difficult for offers with FHA and VA mortgages to compete. Home inspections are mandatory for FHA and VA mortgages, and certain repairs may be required as a condition of financing approval. Conventional mortgages do not require a home inspection. The inability to waive an inspection, or to release the seller from repair requirements, can put FHA and VA buyers to the back of the line.

There is also a misconception that FHA and VA home appraisals are less generous in their valuation than a Conventional appraisal. This is not true.

It is true that the underwriting for FHA and VA mortgages can take longer than a Conventional mortgage, which means the sale can take several days longer to close.

In a “normal” real estate market, the differences between types of buyer financing didn’t create significant disadvantages. In today’s frenzied market, sellers can cherry-pick through multiple offers. Cash is king, and even buyers with Conventional mortgages can have a tough time.

Are Central Ohio home buyers using FHA or VA financing at a disadvantage? Yes. This doesn’t mean you are out of the running! As your Exclusive Buyer’s Broker, we will always present your offer in the strongest possible light, using expert purchase strategies, to give your offer the best possible competitive position.

To see examples of how we help our Buyer-Clients, get our free e-book, “How to Buy a Home like a Pro!

As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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