Originally Posted by california rick
He's just worried about the appraisal since it's FHA and I'm asking for 6% in credits back because my offer is $7k over comps - which are REOs - in the neighborhood.

I pointed out this house is very "clean"; whereas, the others are REOs and need some fixing - and in some cases a lot of fixing - before moving in.

FHA loans have an addendum to the purchase contract stating that if the appraisal comes back at a value less than the sales price, the borrower has the right to back out of the deal with no penalties so that should protect you a bit.

Depending on your loan to value, seller concessions are limited. The max is 6% if the LTV is 80%. I think at higher LTV it is limited at 3%.

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