CASH vs. FHA vs. CONVENTIONAL??

**kimchi33** · 03-29-2010, 02:17 PM

HEY GUYS, new to this forum.. just needed advice..

we placed a bid all cash offer on a house.. sold AS IS.. its bank owned they were asking 199,800
so we did an all cash offer for 199,900 buying as is * house has no heater ac.. illeagal garage built into room*

they were two FHA offers at 220k and 235k.. but the bank would need to install the heater and fix the room, and turn it back into a garage to make it legal

then there were to conventional offers.. one at 20% cash down...and one at 30% cash down at around 220k.. they were also buying as is.. what do you think is the chance of us getting his house? considering ours is all cash down! thanks guys

**nicaben** · 03-29-2010, 04:46 PM

you should get it....unless the REO manager is retarded

the appraisal for the conventional loan will likely come back with un-permitted additions which most lenders wont allow.

**PreviewOrangeCounty** · 03-30-2010, 10:02 PM

Agreed, in this circumstance, cash offers typically trump the higher priced financed offers.

Good luck!

**First Time Home Buyers** · 03-31-2010, 07:46 AM

If you don't get the acceptance, the Asset Manager should be fired.

The regular loans will never go through without having a rehab contingency attached to them.

Banks want less headache and fast closing. This means CASH in most cases.

**Partizannka** · 04-07-2010, 02:08 AM

Cash is always better

no arguing at this point

**agentsranking** · 04-07-2010, 09:15 AM

I'd love to hear if you get the deal. Some of the previous posts suggest that you should get the deal unless the asset manager is retarded. Based on my experience; most are! My guess is they'll accept one of the higher offers, run into problems with their financing and then put the house back on the market or contact you to see if you're still interested a month from now by which time you'll have found and purchased something else. The end result will likely be that they end up selling the house to someone else six months from now for much less money than you offered because they didn't analyze the offers they had in front of them!

**minnesota-mls** · 04-10-2010, 11:06 AM

There is no doubt that cash offers really hold the most weight.

Not only with an REO for sale on the MLS of course, but any kind of property.

We are seeing a ton of cash offers here in the Minnesota real estate market too!!

Best of luck on this one!

**amasters** · 04-16-2010, 02:17 PM

What I've seen is that banks almost always prefer a reasonable cash offer since it is as close to a 'sure thing' as they can get. Something can always go wrong in the loan underwriting process to screw things up. Banks know this, and that is why they prefer a reasonable cash.