Question

An offer is made on a property listed with broker Green for $93,000. The offer is for $91,000 and the buyer will be obtaining FHA financing. The appraisal comes in at $88,000. What recourse does the buyer have?

Answer 1

Answer:

An offer is made on a property listed with broker Green for $93,000. The offer is for $91,000 and the buyer will be obtaining FHA financing. The appraisal comes in at $88,000. The recourse which the buyer have is:

• The buyer may get an FHA loan provided the difference between the appraised price is paid in cash.

Explanation:

• FHA stands for Federal Housing Authority. The FHA loan helps the buyer to get the home and it is a mortgage that is issued by the approved lender of the FHA.
• The benefit of this loan is that these loans require a lower minimum down payments and credit scores as compared to other conventional loans.
• In our case, the buyer will get the the financing from FHA to cover the difference of money between appraised price and actual price of the property.