Core Insights - The article discusses the challenges faced by homebuyers using FHA loans, particularly the stigma associated with these loans that can lead to rejection from sellers [3][10][12] Group 1: FHA Loan Overview - FHA loans were introduced during the Great Depression to promote homeownership, allowing lower down payments and catering to borrowers at all income levels [4][5] - The popularity of FHA loans has increased due to rising home prices and mortgage rates, with the share of FHA-backed mortgages growing from 15% in 2022 to 18% in 2025 [12] Group 2: Seller Bias Against FHA Loans - Sellers often perceive FHA loans as a hassle due to additional requirements, leading to outright rejections of qualified buyers with FHA financing [9][10][15] - Research indicates that bias against FHA borrowers has persisted even in a competitive market, where sellers are more willing to offer discounts [8][19] Group 3: Impact on Buyers - Buyers using FHA loans may face discrimination, with some listings explicitly stating they will not accept FHA financing [14][15] - The stigma surrounding FHA loans can disadvantage buyers, tilting opportunities towards wealthier buyers and investors [24][25] Group 4: Strategies for FHA Buyers - To mitigate the stigma, buyers can address potential property issues upfront and negotiate repairs before closing [36] - Real estate agents can assist by identifying property defects that may concern FHA appraisers, thereby improving the chances of acceptance [35][36]