It won’t go FHA!

“It won’t go FHA.” 

Those 4 words drive me crazy and I hear it all the time.  Whether it comes from clients or real estate agents, it’s a common misconception with FHA loans and many times is dead wrong.

The reasoning behind it is apparently years ago property condition requirements were much stricter with FHA financing than conventional.  That is not true anymore and hasn’t been for at least the last 4+ years.

The other day I was at a broker’s tour and listened to an agent pitch a listing of theirs.  They mentioned some of the windows were cracked so FHA financing wouldn’t work.  Guess what?  Without fixing those windows prior to close of escrow nothing would work except for Cash or FHA 203k financing. If you look at the property guidelines for conventional and FHA financing below you’ll notice they’re the same!

Conventional Guidelines:





FHA Guidelines:





So please from now on, if a property won’t work with FHA financing, it won’t work with conventional financing either no matter how much you put down!


Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties. You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.