I'm trying to buy the perfect home for me for about $28,000. The seller's agent does not list this home as a Cash Only sale, but insists that she won't sell it any other way. This home has been listed for 280 days now. Why can't I buy this home with an FHA Loan?
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Best Expert Answer
If you're asking why the seller won't accept any other form of payment, you would need to discuss that with the seller. If you're asking why FHA loan rules would not permit you to arrange the purchase of the property in a way that would be acceptable to that particular seller, it's important to understand that FHA single family home loan rules (as printed in HUD 4000.1) do not permit the borrower to receive cash on a forward mortgage transaction that is not a refinance except in the form of legitimate refunds of money paid up front that was later financed into the loan amount.
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