What are the pros and cons of buying a house using an FHA loan?

FHA Loan Appraisal

• Is it difficult to get houses appraised for asking price today using FHA loans/appraisers? Specifically in the Seattle area (North Shore area. We are looking at buying. Everything is set but now we have to wait on the FHA appraisal. We are using Wells Fargo, if that makes a difference. Sellers only dropped their price a couple thousand, which seemed fair to us given how updated the house is and how well they've taken care of it. Home is older, built in 1993, but they have remodeled everything. It's definitely one of the nicest maintained homes in the area. I'm just worried now after hearing some stories of homes not appraising for asking price. Our agent seems to think it won't be an issue. Does anyone have an thoughts or experiences?

• Answer:

  I don't know about the probabilities but if it does come in low, there are a couple of options. One is that the seller lowers the price to make the details work. Another option is that if your down payment is high enough, the bank won't care - so you can make up the difference so that the loan to value ratio still satisfies the bank. And of course you and the seller can meet in the middle. Your agent should be able to help you negotiate (with the seller and bank) something that keeps the deal intact.