The Strongest Sacramento Short Sale Buyer: FHA vs. Conventional Buyers

By
Real Estate Agent with Lyon Real Estate BRE #00697006

sacramento short sale buyersIt's true that FHA buyers in Sacramento sometimes get the bum rap, if you know what I mean. Especially when trying to buy Sacramento short sales. That's because many listing agents believe conventional buyers are better for the following reasons:

  • The credit score requirements -- FICO scores -- are higher than those for FHA
  • Buyers put down more cash
  • Appraisers rarely call for minor repairs

However, the fact remains that on a short sale, much of the time by the time short sale approval is received, the buyer has gone south. That's such a funny expression: gone south. I hope it's not discriminatory and, if you think it is, I apologize.

So, I ask you, which buyer is likely to hang in there for the long haul? The FHA buyer -- with an offer that often contains a closing cost credit -- or a conventional buyer? Conventional buyers get the edge 9 times out of 10 and can qualify to buy anything they want. Are conventional buyers more or less likely to wait through the short sale?

I propose that FHA buyers may be more loyal if, for no other reason, than their options are limited. It's all cash in the end.

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Elizabeth Weintraub is an author, home buying expert for About.com, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area with an emphasis on Elk Grove. Call Elizabeth Weintraub at 916.233.6759. Put 40 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. BRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available with free shipping.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

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Topic:
Real Estate General Information
Location:
California Sacramento County Sacramento
Groups:
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Diary of a Realtor
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Posts to Localism
Tags:
sacramento short sale
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fha vs conventional
fico
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elizabeth weintraub

Comments 12 New Comment

Rainmaker
698,527
Barbara S. Duncan
CRS, GRI, e-PRO, Searcy AR
RE/MAX Advantage

We just don't have many short sales here. Does it really take a long, long time.

April 30, 2009 09:17 PM
Rainmaker
573,565
Terry & Bonnie Westbrook
Westbrook Realty - Grand Rapids Forest Hills MI Re
Westbrook Realty Broker-Owner

Good point most of the buyers do get discouraged with the process and those with fewer options may stick it out.

April 30, 2009 09:28 PM
Rainmaker
412,157
Mesa, Arizona Real Estate Mesa Arizona Realtor
Teri Ellis at Homes Arizona Real Estate LLC

Elizabeth, I am thinking you're right...my daughter cannot seem to get a home in Southern California with FHA though she is well qualified. Just doesn't have the minimum 10% down for a conventional.....crazy market!!! ;-)

 

May 01, 2009 10:56 AM
Rainmaker
1,148,912
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Put 40 years of experience to work for you
Lyon Real Estate

Hi Teri: Some agents discount FHA buyers, that's true. But I'm not one of those.

Donne: I see you really LOVE doing short sales, heh, heh.

Barbara: Short Sale approval can take 6 to 8 weeks if I'm doing them, unless it's Countrywide. Then it's 90 to 120 days.

sacramento short sales

May 01, 2009 12:25 PM
Rainer
47,983
Jessica Bigger
Realtor - California Coast Real Estate
RE/MAX Humboldt Realty

Great Blog Elizabeth - Over in Humboldt I think it's even harder to get an FHA buyer accepted on a short sale.  Many of the short sale homes that fall the buyer's price range are usually in the lower median price range and most if not all of those homes have visible minor  and some major repairs that an appraiser would likely flag.  So in our area - if there's obvious issues with the house the listing agents aren't accepting FHA offers.

May 08, 2009 03:40 PM
Rainmaker
1,148,912

Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents

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Additional Information

Broker-Associate at Lyon Real Estate, midtown Sacramento office. Selling since 1974. Homebuying expert at About.com. Best short sale agent in Sacramento. Elizabeth sells homes from Galt to Lincoln.
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Author Bio: Elizabeth Weintraub is a Sacramento real estate broker, author, home buying expert for About.com, a Land Park resident, who specializes not only in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento but sells extensively from Elk Grove to Lincoln. Weintraub is prominently known as the #1 Sacramento Short Sale agent throughout the Sacramento four-county area. Call Elizabeth Weintraub at 916.233.6759. Put 40 years of real estate experience to work for you.