Conventional loan beats FHA

[Marcus Johnson]

Recently we sold our home in a suburb of Minneapolis for full list in one day. The house we found was in a desirable neigborhood and was listed for 280k paying my closing costs. Our offer came with a contigency to sell our home, but were doing a conventional loan with 15% DP. The other two offers that came in were higher, in fact one of them came in @ 290k with closing costs, but the kicker was the FHA which is 3% DP. The sellers took our offer due to the fact that an FHA loan has more hoops to jump through due to it being a Federal loan and only 3% down. The seller saw this as a risky buyer and took the lower offer.

I can understand their position because who wouldn't want a secure buyer?