Conventional vs FHA

[Jay Turingan]

I have a little dilemma and don’t know the answer or solution per say for this problem a friend of mine is facing.

Scenario is that this person has little to no money down , debt to income ratio from what I told was not too bad but could be a problem and credit score currently has dropped too low that a conventional loan may not work.

Property they found was found as a HUD home listing and is a fixer upper for sure. Offer was made in hopes that she can get an FHA loan but was told by seller that the offer would need to be changed to a Conventional loan. Not sure why ? She don't know why either.....

Conventional loans from my understanding is much more stricter in regards to needing a high credit score as well as a larger down payment which is not possible thus why she was hoping for an FHA loan.

Any advise I can give her or does anyone know of a lender that might be able to help. She is in the Knoxville Tennessee area.