When selling your home, it’s crucial to make your property appealing to homebuyers with exterior and interior maintenance. But that’s not all you can do. To attract a diversity of buyers, you can also make your home eligible for an FHA mortgage. These types of mortgages are popular among first-time buyers due to their small down-payment—around 30% of all homebuyers utilize them. However, the requirements for the mortgage can be strict for homeowners, and with such a sizeable chunk of buyers using FHA mortgages, it may be worth the effort to make sure your home complies. Here’s how to make that happen.
Before you go too far, ensure that your home isn’t priced above the maximum loan limit allowed by the mortgage. These limits fluctuate from market to market and are recalculated every year, so be sure to ask your real estate agent about the limit for your area.
As a seller, you should already be taking care of any structural and/or cosmetic issues that could make a buyer wary. But the FHA has specific flaws in mind that can jeopardize a home’s qualification, among them:
- Peeling paint in homes that were built prior to 1978
- Missing handrails on decks or stairways
- Falling gutters
- Foundation defects
- Fences that require mending
- Active pest issues
- Empty swimming pools, or pools without a functioning pump
- Exposed wiring
- Malfunctioning exterior doors
To get final FHA eligibility, you must utilize an FHA-approved appraiser when obtaining an appraisal during closing. A Showcase team member can help you find an FHA appraiser, and coordinate the appraisal process. An FHA appraisal will stay with your home for 120 days.
Making your home FHA-eligible can take a little extra work, but it may be worth it in order to open your listing to 30% more of the buyer market. For more information on how to get your listing in front of as many potential buyers as possible, contact a Showcase team member–it’s our job to market your home as fiercely as it deserves!