FHA just increased their limits on loans. That's the great news.
Costs of carrying an FHA loan are going to be a little lower than conventional since the seller will need to pick up some of the closing costs. There are MIP costs (mortgage insurance) that you will need to check into. These property mortgage insurace costs (PMI for Traditional mortgages) wil lhave to be carried with a conventional 10% down loan anyways.
FHA is definitely worth exploring.
I am doing a whole series on FHA loans that you might want to check out. The link to the first post is below.
Best of home purchasing to you S!
FHA interest rates are actually lower than most conventional loans. You do, however, need to do a "full doc" loan, which means you have to prove both income and assets. If you can do this, FHA is actually a great way to go. I have a client closing next week with a 30 year fixed at 6%. The first year's mortgage insurance can be financed into the loan (which saves you 1.5 pts) and they have easier qualifying.
If you would like a referral to a great lender in the Long Beach area, who can possibly help you get into a home with 0% down using FHA, give me a call. Best of luck in your home buying endeavors. Long Beach is a great city to live in. I know, I have lived here 13 years and won't move.
RE/MAX Palos Verdes Realty
Simply put - there are no additional costs to an FHA loan simply because it's an FHA.
Now - where it gets tricky, is all of that is up to your individual lender. Some lenders will charge a 1% origination up front on FHA loans no matter what (BoA does this as does Wells Fargo in many cases). In terms of some of the additional costs - again, there are lender costs that you might get - but there is no FHA specific cost. You will still have to pay MI - but that is the case with virtually any loan with less then 20% down.
If you're going to go with an FHA loan - shop around. There are some lenders out there that will use it as an excuse to tack in some additional fees or jack up interest rates. Some are better with it. Just gotta shop around.