Legal Question in Real Estate Law in California

I was turned down on the purchase of my first home because I am going with an FHA loan vs. a conventional loan. This was communicated to me in writing by the seller's agent, saying that they refuse to deal with someone with an FHA loan. Is this discriminatory and / or do I have any legal recourse?


Asked on 3/31/10, 8:30 am

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

To have a legal recourse it must be invious discrimination, that is deciding agalisnt someone because of an improper basis such as race, sex, etc. It is not unreasonable to day that there is more red tape and delays from FHA so if the seller wants the sale to go through fast an FHA banned loan is not as good as other types of loans. I do a little bit of real estate investing in the Bay Area and almost all of the winning bids are all cash offers, as the banks selling the properties want the sale to go through within three weeks with no chance of it falling through.

I do not think you have a case. The owner has a great deal of discretion.

Read more
Answered on 4/05/10, 10:14 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California