Buyer is stalling

What is the name of your state? Ohio

We are selling our home and have signed a purchase agreement with the buyer. All contingencies have been met, including the buyer being approved for a conventional loan from their Lender on the agreed date. Their agent called to let us know on this same date that the Buyer was now pursuing an FHA loan with a different lender because their PMI was increased on their conventional loan and they didn't want to pay the additional $500 per year PMI (even though they were approved). For them to pursue this FHA loan, we are told that we are now responsible for allowing their appraiser into our home, and paying for a termite inspection. All the while, the loan security is lapsing past the date agreed upon, and it is also unknown whether or not this will affect the agreed closing date, or that any other costs will occur. My question is this, if the seller is already approved for the loan agreed upon in the contract and their is no contingency in the contract for the increased cost in their monthly payment (because of the PMI), shouldn't the buyer be obligated to go with the conventional loan? Thank you.

[HomeGuru]

Originally Posted by algzee

What is the name of your state? Ohio

We are selling our home and have signed a purchase agreement with the buyer. All contingencies have been met, including the buyer being approved for a conventional loan from their Lender on the agreed date. Their agent called to let us know on this same date that the Buyer was now pursuing an FHA loan with a different lender because their PMI was increased on their conventional loan and they didn't want to pay the additional $500 per year PMI (even though they were approved). For them to pursue this FHA loan, we are told that we are now responsible for allowing their appraiser into our home, and paying for a termite inspection. All the while, the loan security is lapsing past the date agreed upon, and it is also unknown whether or not this will affect the agreed closing date, or that any other costs will occur. My question is this, if the seller is already approved for the loan agreed upon in the contract and their is no contingency in the contract for the increased cost in their monthly payment (because of the PMI), shouldn't the buyer be obligated to go with the conventional loan? Thank you.

**A: terminate the contract. Why did your question ask if the seller is already approved...?

"if the seller is already approved..."

I meant buyer...Thank you for your reply.

[HomeGuru]

Ok**************....