FHA is an excellent way to go right now. There are a few elements that make them attractive:
1. They are not credit score driven 2. At the end of last week the interest rates were running .5 points below conventional rates 3. They just boosted the lending ceiling last week meaning you can buy more house with them 4. They only require a 3% down payment 5. Your down payment can be gifted.
FHA has also lightened their inspection and appraisal requirements from what they were a few years ago.
The only negative I can think of with them right now is that you will pay mortgage insurance for at least 10 years regardless of the amount of equity you have in the property.
This is a product I am suggesting people really look into.
You should definately speak with your lender about FHA loans.
Hope that helps,