The Urban Institute (UI) says it appears that the
current sellers’ market is having a negative impact on government backed loans
and the borrowers who need to use them. In an article posted on UI’s Urban
Wire blog, Janneke Ratcliffe and Laurie Goodman
write that, while soaring home prices and historically low inventories of
available homes have been good for sellers, many of them are unwilling to
accept offers backed by FHA or VA financing.
In a recent survey of agents conducted by
the National Association of Realtors (NAR) found 89 percent of sellers would be
likely to accept an offer from a buyer with conventional financing, but only 30
percent if the buyer were using a government-backed loan. Six percent would not even consider such an offer.