Can seller dictate what financing I choose?

[semarlo2]

What is the name of your state (only U.S. law)? Missouri

I'm purchasing a foreclosure that is owned by Citi Residential lending. This property is in disrepair. I made an offer contingent upon inspection and financing.

I, originally, had secured conventional financing from my bank: 80%, 20% down. I am approved for this financing, contingent upon the property appraising at or above sales price.

After having had the inspection, I realized I would like to try for FHA financing so that I could use some of my 20% d.p. to make needed repairs and move in sooner. I mentioned this to the listing agent. Also, the inspection found other problem areas with the home: termites, plumbing repairs, electrical repairs, etc.

I asked for a $5,000 price reduction to account for the additional (unforseen) problems.

The listing agent contacted me, yesterday, stating that the bank would reduce the price IF I stick with my conventional financing; however, IF I decide to pursue FHA financing they will NOT reduce the price!

My question is: Can the Seller dictate WHERE I get my purchase money???

[Zigner]

Originally Posted by semarlo2

My question is: Can the Seller dictate WHERE I get my purchase money???

They're not.

[nextwife]

Originally Posted by Zigner

They're not.

I agree. They are not. You are the one trying to change the deal.

You are free to use any financing you want, as long as you still close and fund in accordance with the offer YOU brought to the table that they agreed to. They are not obligated to do anything not in the contract.

Watch what you demand. I was just involved in a transaction like this where the buyer was trying to change everything around after the offer was accepted. The bank who was selling then simply refused his ammended deal and moved on to a different buyer. The first buyer realized he still wanted the house, came back, and is now the secondary offer.

[swrdmbo]

Since you changed the contract to $5K less,they have every right to demand conventional financing as opposed to FHA.

FHA has additional requirements and costs than a conventional loan does, and as such they have every right torefuse to participate in an FHA loan.

[HomeGuru]

good responses.