We got preapprovals for FHA from NAF, quicken, and PNC. I could apply to more and may.
Credit scores near 700 (husband's over 700) and combine income 150k. Stable jobs as college faculty.
Foreclosure during graduate school during the housing crisis. 44 unit condo turned apartment when only 6 bought. No association ever formed. Twin unit to mine was sold to an investor for 22K. This was in Chicago so we bought for 200K. Walked from the property NOT due to hardship, but due to the place being rendered unsaleable because no association was ever formed.
In the position to buy again with 7 to 10 percent down, credit, and solid income. 3 years out from the foreclosure.
My questions: I'm buying in a medium size town in Indiana. The market is seller-friendly, but it's not a super hot market. Are sellers always going to look askance at us and go to the buyers with the conventional loan?
Should I even bother bidding on the gems that come and go in a few days? Am I better off sticking to homes that have been on the market for 2 weeks or more?
Then again, we are only in the 150K and down market. We've been approved for more, but see no need. Wouldn't most people in that market be FHA anyway in that price range?
Sellers and their agents tend to be fairly upfront about this in MLS listings. If your agent is any good, they'll vet the seller to make sure they're ok with a loan that isn't conventional.
My last home was open to buyers of any financing type. We wound up selling to a nice, young couple with an FHA loan. They gave a bid 3 days after the place came on the market, and we got a back-up conventional offer about 4 days later. Closing the FHA loan took longer than I wanted, and we were tempted to move on and sell to the conventional buyer more than once. I'm glad we didn't; the people that bought our house seem to really enjoy it.
If I had to do it all over again, I doubt I would change what we accepted. Convetional vs. FHA or other loan type isn't that big a difference from my perspective, but I'll take an all cash offer over either.
Kind of impertinent question, but is this Bloomington or West Lafayette?
I only ask because university cities have their own unique market forces with wealthy parents buying homes to hold them in the short term for their kids. Most of these buyers are all or nearly all cash and can close quickly with minimal repair requests. If you're buying outside of the start of a semester, you're in a much better position with a loan. Don't get too caught up in the late July, early August market near a university!