It seems there are many misconceptions of the FHA loan. Let’s review:
1st let’s talk quality of pre-approval -
You could be looking at an FHA offer with a solid pre-approval VS a conventional offer with a lender who has not done all of their homework. So therefore the FHA offer is less risky. A good question to ask from each buyer is if they have turned in all of their needed paperwork to the lender for pre-approval. Some lenders will write a pre-quailfication on credit score and estimated income alone. Did you know it is possible to have an acceptable credit score but after further investigation of the buyers report there could be issues that could prevent them from getting a loan?
2. Let's talk quality of buyer -
Some people feel if the offer is non-contingent this automatically means they are a better buyer - but get to know the buyers a bit - the non-contingent offer could be of a buyer who is not in a hurry -not experienced in home buying - however the contingent offer could mean they need to move and move now - no time to play around. And they are experienced home buyers/owners - those inspections could go much smoother as they owned a home before and know the home they are buying is not going to be perfect. So if your FHA buyer falls in this category you may want to take them very seriously. The question to ask is where they are in the process of the sale of their home.
3. Let's talk conventional appraisal VS FHA
Many still think a conventional is only looking for value and repairs may not be needed as an FHA offer would. Conventional offers more than ever before are calling out for repairs - many like you would expect from an FHA appraiser - and if your home is in good shape - then why worry - just look at the quality of the buyer and the pre-approval.
4. The quality of an experienced listing agent
A great listing agent will not only understand how to present and research the quality of your offers to choose the best one that works for you, but will probably know the lender’s reputation for getting the job done. There is so much more to consider than price. Be sure to look at all the facts before making a decision on a multi offer situation on your home.