Is FHA a little strict when it comes to the sales price been different on the contract vs price on the MLS?

Question

MLS PRICE IS $105,900, CONTRACT IS FOR $113,300

Answer 1

that should be within tolerance if doing a down payment program in the 113

Answer 2

MLS is just a realtors' data base.  Appraised value means everything.

Answer 3

I hate to be the only one here that thinks it is not alright, but here goes.The first few lines of an appraisal asks if the property is listed and what it was listed for.The most recent FHA class I was in addressed this. If you have a house that has been on the the market and openly advertised for a certain figure and does not sell for that figure, how can it appraise(or be worth) more than that figure if you are appraising market value. If that appraiser gets reviewed, he will likely lose his place on the FHA roster and no longer can do FHA appraisals.FHA is going after appraisers who are covering downpayment assistance with inflated appraisals. I have done it in the past, but I won't anymore.I have talked with the other appraisers in the area and none of them are doing it either. You might still find one that hasn't gotten the word.

Answer 4

Years ago it was common practice to go in the MLS system and alter the list price in contracts like this.  FHA told us years ago that to change the list price after writting a contract may be looked on as an attempt to commit fraud- so most of us quit doing that.

I still sell houses for over list price from time to time for various reasons (sometimes banks list their foreclsoures for a very low price to attract multiple offers and encourage bidding) and just leave it that way in the MLS.  I have not had problems with the appraisals so far.

Answer 5

That doesn't matter at all. List price doesn't matter. What matters is whether the property appraises for the contract price. (With FHA, there are various other sticking points, but the answer to your question, specifically, is that it doesn't matter.)

Answer 6

As long as the appraisal comes in and you are not getting any cash back they will not care.

Answer 7

List price doesn’t matter. It’s an arbitrary number. The appraised value vs what you’re putting down & borrowing is what they’ll assess.