07/15/06, 08:01 PM
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Join Date: Feb 2006
Posts: 1,196
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Quote:
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Originally Posted by goatlady
Itt's NOT the Realtors and the MLS - it's the banks and mortgage lenders who set the criteria for homes. If the home does NOT meet the loan underwriters criteria there is no financing available which cuts down the buyer's market dramatically! Banks want conventional homes in order to secure their loan $$ and to cover their investments, especially if the bank has to foreclose and resell the home to recoup their investment - conventional homes sell better and are considered secure collateral for loans, nonconventional homes are NOT considered secure collateral. That's where your problem is going to be, fordy, finding a "cash" buyer or you must be willing to act as a banker and carry the loan on the property with monthly payments direct to you cause your property most probably will NOT qualify as collateral for a buyer's loan.
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Fordy was actually talking about how the comparable prices are set by the realtor, but what you say is true. The two houses we have sold (DH and I) both went FHA. You want to talk about jumping through hoops to please the lender!! Yikes. I think a lot of folks now days don't have available cash for a conventional loan, and even those lenders are becoming more picky. We looked at a piece of property in the country about a year ago and checked into a conventional loan. We were told the property needed too much work and could only get a construction loan. We weren't interested in going that route. It used to be a conventional lender was much more lenient on the condition and specs of the house. Not so today.
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