Replies to This Discussion

Permalink Reply by Wendy Martin on October 29, 2012 at 7:39am

Buyers who came to my FHA short sale listing had an FHA loan.  We asked for a variance and got them 3% closing costs. So it is negotiable, and more likely if you come in within their net amount.

Permalink Reply by Tara Samney on October 29, 2012 at 7:41am

I just got this on Bank of America on a VA loan....so may not be restricted to FHA

Permalink Reply by James ferebee jr on October 29, 2012 at 7:46am

If FHA is netting more than their net they could request a variance to get it paid but if those figures are tight, no they will stay with the 1% only. 

Example, you have to net them 88, 86 or 84% depending where you are after the ATP is received.

So for example lets say you are at the 86% net and your offer to FHA will net them over that 86% and even more than 88% then the rep may request a variance but you must ask for it because most of them will not submit one unless you ask for it.. 

Permalink Reply by Kevin - Greenville, SC on October 29, 2012 at 8:02am

FHA PFS Guidelines are for 1% of the Purchaser's Loan amount, but a variance will allow for more even if the Purchaser is not obtaining a FHA Loan.

Permalink Reply by ElizabethWeintraub00697006LyonRE on October 29, 2012 at 9:29am

I've done them with FHA loans on FHA short sales as well but it does require a variance. And HUD does not have to grant a variance. As others have pointed out, if your offer with the 3% concession is above the minimum net, you'll probably get the variance. However, if you are in a competitive marketplace with multiple offers, you would probably be better off writing your offer with only a 1% concession, if your buyer doesn't want to gamble.