Question by dangit2: What are the requirments for the Seller when the buyer wants to use a rural housing loan or an FHA loan?
I know with an FHA loan the seller is required to pay for certain things what are they and also what are the things that a seller is required to pay when the buyer wants to us a rural housing loan? Are there any special requirments that the seller is required to do for the house to qualify for these loans…especially if it is a newly built home?
Best answer:
Answer by teesha f
If this is a newly built home there shouldnt be anything. FHA has changed allot recently. Before FHA would have an inspoection done that was very tedious. Now they just send an appraiser and if he/she sees something that could be a problem they will note that. When writing a contract for a home that would be purchased with FHA there will be a form that stated what they want the seller to pay in repairs for the FHA loan. It usually is around $ 500. THese would be for repairs that normally wouldn’t need be in a newer home. On the RDA loan I believe it’s the same. If your home is newer and their isn’t any safety hazards like showing wires or leaking roofs etc you should be fine. I just had a house built in 1950 pass just fine.
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I agree with teesha, but there are also some so-called “government fees” which the buyer is not allowed to pay and which the seller must pay. The amount of these should be stated in the offer. Otherwise it is just like any other real estate transaction.
The buyer may also ask the seller to pay for some closing costs on his behalf. This is negotiable, but often if the buyer asks for this, it is because the buyer needs this help in order to purchase the home. Sometimes the buyer will up the price to accomodate these closing costs (sometimes even more than the asking price). If you’re the seller and you agree to pay the closing costs and the property appraises for less than the purchase price in the offer, you will still get stuck paying those closing costs even if the purchase price is less.
I would consult with my agent about these matters.