This 1000%, I sold in March right at the beginning of the pandemic in an incredibly competitive market. The final buyer was determined by the specifics of thei

This 1000%, I sold in March right at the beginning of the pandemic in an incredibly competitive market. The final buyer was determined by the specifics of their offer, not just their final price. FHA with 3.5% down just adds additional risk for closing that 20% conventional doesn't. That risk is minimal, but it's a risk the buyer doesn't have to take. I'll also add that in competitive markets you also get into a situation where it's a bidding war and you're pushing what the property might appraise for. If you're doing 3.5% down, even though you might be approved up to X, the bank may not be willing to stretch the appraisal for the property. With 10% or 20% down, that's less of a concern. Also FWIW, for new cars, how you pay does matter. The dealer makes money on the financing, so they will give you a different cash price vs if you go with their financing. The reason being is that they want to sell you a "zero percent" loan that effectively bakes in the interest up front, so their financing will look better, but the final price will be higher.