That coupled with the extremely limited inventory especially in that 200K and below market. If you are qualified for 200K, look in the 175K range as you may have to increase your bid to be competitive.
Inquire with your lender about grants available to you to assist you with costs or closing cost programs to help with your loan, also keep in mind these sometimes take more time so make sure your offer anticipates the extra time needed
Best of luck in your search
Realty World eCurb REALTORS
You are right on the competition of this market. To answer your question, it comes down to negotiations (which your Realtor will do) and the competition. If I may be direct, yes it will be difficult to get the seller to (1) accept an FHA offer and (2) pay your closing costs. But with that said, a lot of this comes down to the experience of your Realtor because we do get this done for buyers even in this market. There are also other variables such as the condition of the property youâ€™re looking at, location, they type of seller that owns the house (example, HUD homes will give you a better opportunity than other banks, Fannie Mae also.) so there are several ways to get your offer accepted.
If you want my help, just go to my site http://www.sacshort.com and fill out the contact page, this will send your info directly to my cell phone.
As you already know in today's market and the shortage of inventory, it is very competitive for buyers. You want to do everything possible to make your offer acceptable to a seller the first time they see it. Don't ask for a laundry list of items for the seller to pay for. Speak to your lender, maybe a gift from a family member could help get you to the point where you don't have to ask for the seller to pick up the closing costs. Don't ask for a long escrow. Make the offer as clean as possible.
In this competitive market, I recommend writing the strongest offer you can. If you don't have the closing costs, save up!
Best of luck.