Which Financing Terms Should You Select on the MLS?

📌 Why MLS Financing Options Matter

Agents and buyers filter listings based on financing type. If you select the wrong options—or too few—you may accidentally block qualified buyers from seeing your home.

On most MLS systems, you can allow multiple financing types at once. This guide explains which to choose based on your home’s condition and your goals.

Need to understand loan types first? See: Real Estate Mortgage Guide

🏠 Step 1: Choose Financing Based on Property Condition

✔ Move-In Ready or Recently Updated Homes

• Conventional
• FHA
• VA
• Cash

These homes qualify for the most loan types. Allowing all options maximizes your buyer pool.

✔ Homes With Cosmetic Issues

• Conventional
• Cash

FHA/VA buyers may still purchase, but their appraiser could flag repair items.

✔ Homes With Significant Defects or Sold As-Is

• Cash
• Conventional
• Hard Money (if your MLS allows it)

FHA/VA may not allow closing until safety repairs are completed. Learn more: When to Use an As-Is Contract

👥 Step 2: Choose Financing Based on Buyer Type

✔ First-Time Buyers

• FHA
• VA (if applicable)
• Conventional

✔ Investors & Flippers

• Cash
• Hard Money
• Conventional (sometimes)

✔ Rural Buyers

• USDA

Choosing the right financing terms helps the right buyers find your listing faster.

🔎 Step 3: How Agents Filter Listings by Financing

Buyer agents often filter out homes that don't support their client’s financing. If you only select “Cash,” you may disappear from:

• FHA buyer searches
• VA buyer searches
• Conventional buyer searches

More financing types = more exposure.

If you're unsure, allow all financing that your property reasonably qualifies for. For exposure tips, see How IDX Websites Maximize Exposure.

⚠️ Step 4: When NOT to Select Certain Financing Types

❌ FHA / VA (Avoid if...)

• Your home has safety or habitability issues
• Your roof, HVAC, or electrical system is failing
• You are selling strictly “as-is” and won’t fix anything

❌ Cash Only (Avoid if...)

• The home is financeable and you want top dollar
• You want bidding competition
• You need maximum visibility

Cash-only listings drastically shrink your buyer pool unless the home needs major repairs.

🏡 Step 5: FSBO Checklist — What to Select on the MLS

Your safest default settings (for most properties):

• ✔ Cash
• ✔ Conventional
• ✔ FHA
• ✔ VA

Only choose “Cash Only” if:

• The home needs major repairs
• You are explicitly marketing to investors

Only choose “Seller Financing” if:

• You own the home free and clear
• You understand the legal requirements

FSBO resource: DIY Home Selling Playbook

🔁 Step 6: Should You Allow “Assumable” in the MLS?

Some MLS systems include an option for Assumable Financing. This applies when the buyer may take over the seller’s existing mortgage—often at a much lower interest rate.

✔ What Loans Are Assumable?

• FHA loans — assumable with lender approval
• VA loans — assumable, but entitlement issues apply
• USDA loans — assumable in some cases
• Conventional loans — rarely assumable

✔ When to Select “Assumable” on the MLS

• If your existing loan rate is far below current market rates
• If your loan type (FHA/VA) allows assumability
• If you want to attract budget-conscious buyers
• If you have significant equity (buyer must cover the difference)

⚠ Considerations Before Listing as Assumable

• The buyer must still qualify with the lender
• VA sellers may lose part of their entitlement until the loan is paid off
• The buyer may need a large cash down payment to cover your equity
• Closing timelines are often longer

If your loan is eligible, this can be a powerful marketing tool—especially for FSBO sellers. Learn more: Real Estate Mortgage Guide

🔑 Bottom Line

Choosing the right financing terms on the MLS expands your exposure and ensures the right buyers see your listing. Allow everything your property qualifies for—then narrow only when necessary.

📋 View Flat Fee MLS Plans

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