Seller's agent not happy for changing to FHA loan for house hack

[Dale Miller]

Hi everyone,

I am buying a triplex in Ohio that I plan on living in one unit and continuing to rent out the other two. I got my original offer accepted but then I went to the bank and asked about switching from conventional to a FHA loan. We got all the paperwork done and I let my agent know to make the change on the purchase agreement. She called back yesterday and said the seller's agent was giving flack that the house would not get the appraisal because of chipping paint and other repairs such as electrical. I had only asked for a few repairs from the inspection because the electrical was simple things like putting a cover on a junction box that I planned on just doing myself but since switching to FHA I guess these would need to be done beforehand. To me I didn't think this would be that big of a deal but I am still fairly new to this and have only done a couple deals. My question is I am wondering if I should just switch back to conventional or see what happens with the FHA? I was doing some reading on here and thought maybe a 203k or freddiemac home possible may have better terms than conventional if the FHA doesn't work out. Any input would be appreciated, thanks for your time.