We just received our second offer on The Mini House…
It’s another FHA buyer, so they still have the issue of having to wait until at least the beginning of October to close (FHA 90 Day Rule). On top of that, the buyer seems to have very borderline credit. According to some contingencies in the contract, it appears he both needs to get his credit score up to qualify for the loan and he need to figure out where the down-payment money is going to come from (he’s planning on getting down-payment assistance). Obviously, both of these contingencies set off red flags, and because of that, I’d say it’s very unlikely that we’ll end up moving forward with this offer.
The funny thing is, despite these two contingencies, the buyer submitted a pre-approval letter with his offer!
Anyway, if the buyer is interested, we’re happy to have him speak with our lender, at which point we’ll have more details about his financial situation and more realistic idea of whether there’s any chance he’d qualify for a loan. In fact, this — along with some minor contract changes — was the counter-offer we made. If they’re willing to speak with our lender, we’ll go from there.
Regardless, the first offer we received on this house is still on the table. Because of the FHA 90 Day Rule, the buyer’s lender is telling them that we can’t even sign the contracts until the end of September, but they’re willing to wait. Assuming we don’t get a better offer between now and then, we’re happy to wait as well, and then move forward with that offer when the 90 days is up.
We’ve had a lot of activity around this house all week, and I wouldn’t be surprised if another offer comes along in the next couple of days…
J Scott,
Thanks for explaining all of this out as you go, it really helps drive home the fact that you need to have your own lenders to qualify buyers. Why leave it up to an unknown?