This article on Bankrate.com is a good read om why a person might consider an FHA loan or VA loan.
If you are a Veteran then the VA option might be a great choice. Not only can you buy home with no money down, but you also might be able refinance up to 100% of your property value.
If you are not a Veteran then a FHA loan might be a good option for you. These home loans allow you to take out more cash or pay off more debt then a conventional loan. In regards to purchasing a home the FHA loan only requires 3.5% down payment, rather then 5% with conventional. Although, FHA may sound like a great option, it costs a little bit more then a conventional loan.
Please have a mortgage loan officer review your personal situation to find out what product works best for you. Make sure you receive more then a single option from your loan officer, so you can compare the cost between the different types of loans and then you will be able to make an educated choice.
