That was then, this is now.
First, most homes in this area are now sold in a multiple offer situation. Your offer will be compared to cash deals, conventional loans (with downpayments of more than 20%) and FHA loans. Cash wins a lot of the time. Conventional loans would be considered a second best option.
Of course, this is based on the average home purchase of about $200,000. If you're looking to buy something a lot more expensive, it probably doesn't matter, because the competition happens at the economical part of the market.
Also, a conventional mortgage means that you won't have to pay for mortgage insurance, and your monthly payments may be lower.