That is incorrect. As I said before, financing is not a protected class. Neither are people who can't get a conventional loan. A seller can take, not take, any kind of loan they want. They can even refuse cash if they want to.
Steven, the seller can't tell them what kind of loan to apply for but they can refuse to accept an offer based on the kind of financing the buyer is offering. What they actually apply for is a moot point.
Especially with REO's and Foreclosures, deferred maintenance can be too expensive for some lenders to correct, which makes an FHA deal impossible to close vs. conventional
In other cases, if it's a flip, there are also rules about qualifying for FHA loans.
Sellers don't have to state what kind of financing they would consider, but it may weigh in their decision-making. FHA has stringent rules and could take longer to close (45 days compared to 30 days for conventional).
FHA requires 2 appraisals --- and if the appraisals are so far apart, it may not qualify for FHA loan. This happened to my buyers on one flip: one appraiser came up with $400K and the other was at $295K. Neither one would change his appraisals, and my clients couldn't get their loan. So we had no choice but to walk away and find something else.