Is there any way to make an FHA offer competitive?

[Aaron C.]

When competing against cash buyers on portals, and the MLS, I'm curious to know what kind of strategies are there when your offer is coming from a FHA loan or low down payment?

[Frank Wong]

Originally posted by @Alexander Felice:

offer a high earnest money and short due diligence. 

If you're sure to close, you can scrap the contingencies and commit hard. This may give you an edge.

That said, use at your own risk ;) 

 Exactly Alexander. If you are competing with cash buyers this is your only shot.  Gotta waive all contingencies.  In most cases, the cash buyer is doing this anyways.   Your risk is the loan not going through, the appraisal is low, or issues during inspections.  Deposit will be at risk of being lost.  I 2nd use at your own risk.  Try to put down 5% at least you can go with a conventional loan.

The reality is if you are looking at a house with 8+ offers and you are FHA you are not getting it. No terms or price will get the seller to accept the offer when there are offers which will have higher down payment or cash on the table. My suggestion is to move to less competitive properties. I know that's not fair but that's the game. I just saved you 6 months of losing out on offers.