There are many, many loan options for those looking to buy a new home. Popular loans, especially for first time home buyers, are FHA, VA, and USDA.
However, it can be MORE difficult to get a home when using these loans, especially in a seller’s market.
If you’re asking why that is…
Real estate agents that represent sellers would prefer conventional loans, AKA those 20% down or even 3% down loans, as they are better for their seller. These traditional loans typically close faster and are easier for the seller as there are no specific conditions that the house has to meet.
With FHA, VA, and USDA loans, however, there are conditions attached to the home in order for it to stay under contract.
Let’s look at some stats for Eagle Mountain in March, 2019.
*52 homes closed using conventional loans- average contract time was 29 days
*29 homes closed using an FHA loan- average contract time was 40 days
*4 homes closed using a VA loan- average contract time was 59 days
*7 homes closed using a USDA loan- average contract time was 34 days
Clearly, conventional loans close more quickly, making them more appealing to those selling their homes.
THAT is why you need a TOUGH Realtor who knows what they are doing to get YOUR offer accepted. I have many options at my disposal to strengthen your offer even when you use one of these loans, such as the amount of earnest money we put down, when the earnest money goes hard, how quickly we work out your due diligence, how quickly we go through inspections, etc.
Get a tough Realtor in your corner to give you the BEST possible advantage when buying a home, regardless of what loan you use!