FHA Offers Looking Weak - Express Loan Approval?

[Art Maydan]

I just put in an above list price offer on a 2-flat with an FHA pre-approval and they took another offer. I suspect this is going to keep happening when inventory is so low and buyers can choose someone whose financing looks stronger.

My lender told me about express loan approval. He says that it makes the offer look stronger - almost on the level of a cash offer.

My lender says:

"Under this program your loan will be underwritten (financially) right now with the address as TBD. This will allow your realtor to put in an offer without financial contingency, which makes your offer a much stronger offer and exponentially increases your chances of getting your offer accepted.

The only contingency on the offer would be: Purchase contract, Clean title, Appraisal, Flood cert"

The only cost is $200 which gets credited back at closing.

Has anyone heard of this before? Is it a good move to make my offers look stronger? I was considering going from FHA to 5% down conventional when my lender recommended this instead.