Richmond, VA asked in Real Estate Law for Virginia

Q: Can a homeowner selling a house turn down a home buyer's offer based on the type of lending they are using?

Homeowner turned downed my offer on their house citing they did not want to sell to someone using my type of lending (USDA). The purchase offer was submitted with a financing pre-approval letter from my mortgage lender dated the same date as my offer.

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1 Lawyer Answer
Ross Cameron Hart
Ross Cameron Hart
  • Salem, VA
  • Licensed in Virginia

A: Probably. A seller can turn down an offer tp purchase for just about any reason they want to, as long as it not a discrimination against a person in a protected class. Some lenders and loan programs impose requirements on sellers that they don't want to fool with - such as requiring discount points, certain types of inspections, etc. I have refused certain types of sales because of the proposed lender based on history with that lender.

About the only type of buyer a seller is 'stuck' with is one that is 'cash', no strings, and for the exact amount of the listing agreement. And even then the only real penalty is that the real estate agent is due a commission.

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