FHA or 203k Loan

[Justin Louie]

Hi all,

First, just a little background. If you want to see my question, skip to the end of this post. 

I have been continuing to learn thanks to BP: the podcasts are amazing and the content is so insightful.

Lately, I have had a bit more time to really sift through some personal issues and realized really that my real estate hopes and dreams have been nothing more than that...hopes and dreams. I am working to make a commitment to this thing and I know I'm moving in the right direction as slow as it may be.

I have taken a bit more action and have reached out to many agents and mortgage brokers in my area. Some of of previous posts explained my interests and plans, and I had decided that trying to house-hack a small multi-family to be my ideal first step to make my first purchase both a primary residence and investment property. A few things: In my area, the market is extremely hot and I'm seeing multiple bids on properties with closing way above asking price (with many all cash offers and few contingencies). I haven't found anything yet that seems reasonable for my situation. FHA or 203k would be wonderful given I find the right property.

My question: Most of the agents/mortgage brokers in my area that I've spoken with almost write me off because of my situation. I've tried to have them level with me and I think the gist of it is that because I am going to need an FHA or 203k, they don't want to work with me because the hopes of getting that offer accepted are little to none. Why would a seller take the buyer who doesn't want to give up contingencies and has to get 95%+ financing when they can turn around and accept an all cash offer? What would be the best next action? Continue to network until I find someone to work with me? Am I being too naive in the current market conditions? Maybe it's best to sit on the sidelines and wait to get in?