Because purchasing a home is an investment- unlike with renting, the money that you spend every month goes toward a long-term purchase- families who opt for FHA loans can potentially see the benefit of their purchases for years to come.
The inspection standards for a home under FHA mortgage consideration are also tougher than those for a conventional loan, so if you are looking at buying a home that will need a lot of work, this type of mortgage may not be for you.
If you apply for a mortgage guarantee through the VA or through an FHA program then you are less likely to wind up bombarded with fees because both organizations limit the amount of acceptable fees charged to guaranteed loans.
Payments for private mortgage insurance - Lenders usually require a borrower to have private mortgage insurance if their down payment is less than 20% of the purchase price, unless the mortgage is guaranteed by FHA or the VA.
While FHA loans are oftentimes attractive as a result of the lower credit standards and flexible underwriting, it is important to remember that FHA does charge an upfront mortgage premium, also referred to as a funding fee.