First, congratulations on taking this important step.

Next, to your question, it really shouldn't matter to you at all if the buyer is financing their purchase with an FHA mortgage or a conventional mortgage. You receive cash at closing either way and if the terms and offer price are the same, then you net the same amount. There isn't an extra charge to the seller if the buyer finances using an FHA mortgage.

FHA has a minimum down payment requirement of 3.5%

Conventional mortgage down payment requirements start at 3%.

There are significant differences to the buyer for mortgage insurance between an FHA mortgage and a conventional mortgage. The MI rate is much lower for the buyer using FHA and the DTI ratios are larger using FHA which means more people qualify for an FHA mortgage.

There are some differences in how the appraisal is completed with an FHA mortgage - mainly having to do with the health and safety of the property (your house). As a consequence some properties just don't qualify based on condition. Most properties IME qualify. There are some that just don't because of deferred maintenance. A good Realtor can tell you what, if anything, needs to be repaired before putting your home on the market to meet FHA standards.

The more important question for you, as the seller, is who is the buyer using to originate and fund their mortgage? The big box banks are notoriously bad at originating and actually closing on purchase mortgages since the mortgage meltdown in 2008. There is a more than 30% decline rate AFTER the buyer was "pre-approved" at the big box banks so it is risky to go with a buyer that has selected one of those banks for their mortgage. So the lender is critical to your decision. If you had two offers that were equally strong and one 'pre-approval' was through a big box bank like Wells Fargo or Chase (or BOA) and the other was through a non-bank lender - I would go with the non-bank lender every time. JME as a Realtor for more than 40 years.

The reality is: most offers have different terms even if the initial offer price is the same. Look for the strong buyer with the lender that has a track record of closing on time. A good agent/Realtor can be an asset when you get multiple offers. If the agent isn't knowledgeable about financing and lenders, find another agent to list your home. It's a critical part of our business.

Great information. My house is fairly new it was built in 2017, so that shouldn't be an issue. Relocating in January for a new job and I just want to sell it as quick as possible with as less headache as possible. So that really great information. Thanks!

Conventional, every time. I disagree that it should not matter to you. It matters very much if your house is older. FHA has a lot of picky requirements and will demand new things as small as outlet plates. Any tiny amount of peeling paint is a major issue to FHA. They will find a long list of "problems" and the Seller is required to repair them all before the loan can close - none of this "give the Buyer a credit at closing" stuff is permitted. Lack of a railing or the railing too high or low - must replace or repair. Tiny hole in a screen - must replace or repair screen. Any electrical thing, no matter how small - must repair.

If your house is newer, should not be as much of an issue, though.

FHA is more lenient with credit than Conventional lenders, so FHA buyers tend to have (NOT always, but it is a tendency) less financial stability, so they are not always the strongest buyers. So there is a higher chance FHA buyer can't close.

I agree that non-bank lenders are the better way for Buyers to go.

OP's house was built in 2017.

I agree that an older home that isn't well maintained is not a candidate for FHA financing as I mentioned in my original response.

Should be no reason to exclude FHA financing with a recently built house unless the sales price is likely to be over the FHA max loan amount for the OP's area.

It's about marketing to the widest group of buyers including those that finance FHA or VA.

As a full time realtor in a hot market helping sellers and buyers navigate their way through winning an offer on a home and getting it to the closing table, it certainly does matter! Conventional trumps FHA everytime if the offer amount and terms yield your net goal regardless of the age and condition of your home.

Conventional for sure. Cash is even better! Anytime the government is involved it is painful and slow. Good luck. Market here is pretty hot right now so get it on the market ASAP. Real estate is slowest from Dec thru Super Bowl. Although might not have a Super Bowl in feb 2021! Spring to early summer best time.

Flo, FHA and VA mortgages aren't originated at all by the government. They are originated and funded by mortgage lenders and routinely close in 30 days with a competent lender.

FHA loans are insured by the government against borrower default to induce lenders to loan up to 96.5% of the appraised value. VA loans are guaranteed by the government against borrower default. Both FHA and VA provide guidelines to the lenders under which they will insure or guarantee the loan. BTW, each individual lender can make those guidelines more restrictive to the borrower(s) but not less restrictive than the minimum guidelines.

Cash is great. However, I've found that many cash buyers expect a discount from list price more than a buyer that would finance the purchase. Some sellers would rather take the discount, some would rather have the higher sales price.

All other things being equal, conventional for sure. Less potential for headaches and holdups.

I also suggest talking to local realtors to find out what they say about conventional vs. VA or FHA.

When I lived in Texas the realtors strongly recommended avoiding VA loans because the paperwork was a PIA and they took longer to close. I was eligible for a VA loan, but went conventional. However, when moved to Virginia in 2012 the realtors welcomed VA loan offers with open arms, and it was very smooth sailing to get a VA loan for a house built in 1940 (it was definitely not in perfect condition). I believe the federal loan programs use the same rules everywhere, but somehow the seller perception is not always the same.

Bruce

Bruce I agree with your main point, but you mention that federal loan programs are the same everywhere and that point needs clarification. The minimum guidelines to the lenders are the same; however, each lender is allowed to make the guidelines more restrictive (not less) than the federal guidelines. These are called 'lender overlays'. For example, if the min credit score for FHA (or other federal loan program) by federal guidelines is 580 the lender can make their credit score min requirement 640 or any other number as long as the lender treats each borrower for that program the same with the same lender overlays. In other words, its a lender overlay. I run into these all the time and have successfully had buyer(s) close with Lender B with no overlays when Lender A had overlays that eliminated the buyer from approval at that particular lender, These overlays can be and often are geographically regional too. The overlays can be anything as long as it doesn't violate fair housing regulations. I see them frequently in the credit score area and the debt to income ratio areas and loan to value ratios and less frequently in other qualifying guidelines. BTW this includes conventional mortgage guidelines as well.

The buyer of my old home (offer accepted July 2019, closing September 2019) was FHA. They offered 15K over my asking, and the conventional bid was 5K over asking. I went with the FHA offer. They seem to be more strict with requirements - but hey, we closed and the old home is theirs, now. Your house is a lot newer than mine was.

How does USDA stack up as a loan type?

I haven't experienced a USDA mortgage because they aren't available in my main market area but if you are looking for experience with them, start a new thread and you will get answers.