Have an offer on my condo with a financing contingency (FHA loan) at 2.99%. I have no sense if 2.99% is feasible these days and if FHA is typically less than, greater than, or equal to conventional. Just concerned about buyer using this to wriggle out down the road.
Pre-approval says 2.99% for what it's worth.
Lukewarm condo market so I don't have the feeding frenzy with detached houses enabling me to pit buyers against each other.
Selling Condo - Max Interest Rate on Offer
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Re: Selling Condo - Max Interest Rate on Offer
Does the pre-approval show a lock and deadline on that rate?
If not, you could find out that the rate wasn't 'low enough', and you'd have no recourse.
At the least, have a relatively short time for the financing contingency, and have a decent amount of earnest money, something that the buyer wouldn't want to walk away from and an amount that would appropriately compensate you for putting the property back on the market, with any accompanying uncertainties.
RM
If not, you could find out that the rate wasn't 'low enough', and you'd have no recourse.
At the least, have a relatively short time for the financing contingency, and have a decent amount of earnest money, something that the buyer wouldn't want to walk away from and an amount that would appropriately compensate you for putting the property back on the market, with any accompanying uncertainties.
RM
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Re: Selling Condo - Max Interest Rate on Offer
Even in a lukewarm market.... no reason to handcuff yourself. It's probably not a big deal, but I would have them scrap it, or at least bump it up a bit to say 3.5%
Re: Selling Condo - Max Interest Rate on Offer
In this market, there should be no need for the seller to accept such a contingency.
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Re: Selling Condo - Max Interest Rate on Offer
Is this the only offer, or was there a lower non-FHA one?
Note that for FHA, if the appraisal does not come in at the agreed-upon price, they can walk away as well, or you will have to drop the price. https://www.fha.com/fha_article?id=2179 ... n%20amount.
Note that for FHA, if the appraisal does not come in at the agreed-upon price, they can walk away as well, or you will have to drop the price. https://www.fha.com/fha_article?id=2179 ... n%20amount.