It'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.
The Short Sale Savior, by Elizabeth Weintraub, coming May 15th