With a poor credit rating you will pay more for goods and services that require a credit check. For example, you will have a much higher interest rate for your home loan.
You will pay more for auto financing, auto insurance, home insurance.
Some employers are running credit reports on applicants.
Why not do something radical like working on your credit rating first? Then once your credit is in good standing will then select a mortgage product that fits your needs. Once you have good credit will you have a choice of mortgage products and not just have FHA products.
Hannah Fliegel, FICO Pro