In 2024, 74% of homebuyers financed their purchases despite various financial obstacles that can lead to failed transactions. Commonly, buyers may withdraw from deals due to financing issues, placing sellers in a difficult situation. There are several creative financing options available, including low down payment programs like FHA and VA loans. When financing falls through, sellers often hold the majority of negotiating power since buyers have defaulted on their purchase agreement. Understanding the financing landscape and potential pitfalls can help sellers better prepare for a successful sale and recovery in case of setbacks.
The majority of power is held by the home seller, because the buyer has not met the obligations of the purchase agreement or offer on the home.
FHA is a pretty standard one, which requires around 3.5% down, but some lenders also have programs that require 5% down.
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