low appraisal on fha options

[Mike Landry]

Asking for a friend. They have a contract on the sale of their house, multiple offers first week. We know their agreed price is on the high side. Guessing appraisal will come in about $10,000 low. Buyers are doing an fha loan with about 13% down but pre-approved for an fha with a LTV of %96.5. What options can we expect if the appraisal comes in low? Are the buyers ALLOWED to bring the difference to closing on an FHA loan? The sellers probably won't come down much. Should we insist on a conventional loan instead? Does it make a difference on the ability of the buyer to bring extra cash to closing?

Thanks