Homebuyers who are financing through a Federal Housing Administration (FHA) are often surprised to learn that the property they are hoping to buy does not meet FHA requirements. The most common question that loan officers hear is why can’t buyers can purchase the homes they want, as long as the appraised value is high enough? All of this relates to protection for the mortgage lender. Since the property is furnished as collateral for the mortgage loan, if the borrower defaults on payments,...
