FHA Loan Desirability

[Steve Oak]

Hi BP community,

This is my first post on the forums and I'm curious if using an FHA loan and only putting down 3.5% on a MFH for house hacking is seen as "less desirable" of an offer to a seller that may also receive offers with 20% down (or any down payment significantly higher than 3.5%)?

This idea stemmed from my parents who have invested in a variety of RE properties in across multiple states so I’m sure there’s some truth but I’m open to hearing others’ thoughts.