Buying A Home In Ventura County With An FHA Home Loan

FHA home loans, with their low down payment requirement, have helped many in Ventura County achieve the dream of home ownership.  However, the current low inventory of homes for sale in Ventura County and the nature of homes for sale in Ventura County have made purchasing a home with an FHA home loan almost unattainable.  From the 1856 homes currently for sale in Ventura County only 417 of these homes accept offers from home buyers with an FHA loan.

The majority of homes that are for sale by banks, REO homes, will not take offers from FHA approved home buyers.  Bank owned homes/REOs are sold “As-Is”.  Since FHA has a series of strict guidelines on the condition of the home, most bank owned homes/REOs will not pass the FHA home loan safety and condition requirements.

Home sellers have always been more interested in seeing cash up front.  In Ventura County’s current real estate market where the home inventory is low, home sellers who have priced their home accordingly tend to receive more than one offer in the first couple of days of marketing their home.  FHA home buyers are required to provide only a  3.5%  down payment, therefore, home buyers offering a higher down payment have a better chance of having their offer accepted.

So how does a home buyer in Ventura County with an FHA home loan overcome all these obstacles?

Here are a few suggestions:

• If you are really interested in a bank owned home/REO and have the finances don’t be intimidated; make an offer, but be sure to mention in your offer that you are willing to pay for all of the necessary repairs to bring the home up to FHA standards.

• Ask your FHA approved lender about the FHA 203K Loan Rehab.  This loan allows a home buyer to finance the purchase price or the balance of the loan with the cost of repairs included into the home buyer’s loan amount.  Again this is a perfect loan for home buyers who are looking to purchase a distressed property such as some of the bank owned homes/REOs currently on the Ventura County real estate market.

• Don’t ask for closing costs and repairs.

• There is no strong advantage to offer more than the asking price.  Banks are not in the business of owning real estate.  They prefer to sell these REO properties as soon as possible.  Home buyers with an FHA home loan need to make their offers as simple as possible.   Offering the bank a price higher than the asking price does not guarantee the home buyer the property.  If another home buyer makes a cash or conventional loan offer even at the asking price or less it is very likely that the bank will discard the FHA-based offer in order to minimize their complications.

If you have any questions about FHA loans or would like assistance in locating a home in Ventura County, you can contact me at mana@manatulberg.com or by phone (805) 443-8898.

You may enjoy these posts too:

1. Making an Offer on a Bank Owned Home or REO in Ventura County
2. Ventura County Home Buyers Ask: Why Don’t Banks Accept My Pre-Approval Letter?
3. Buying A Bank Owned Home In Ventura County
4. Difference Between Short Sales and Bank Owned Homes