Why don't home sellers want to take FHA?
FHA loans typically require the seller to pay more costs than conventional loans. Here are some examples of costs that sellers may be required to pay on FHA loans:
1. Upfront Mortgage Insurance Premium (UFMIP): This is a fee that the borrower pays to the FHA at closing, but can be financed against the loan amount. However, sellers may be required to pay up to 6% of the sale price towards this fee.
2. Appraisal Fee: The seller may be required to pay for the appraisal if the buyer is unable or chooses not to pay for it.
3. Title Fees: The seller may be required to pay the owner's title insurance policy, title search fees and other related fees.
4. Transfer Taxes: The seller may be required to pay real estate transfer taxes or recording fees.
I'll be honest, when I sell my property, I don't accept FHA mortgages (like VA, but that's a separate topic).
Author: Elina Linderman
