It’s just that, we’re not in a high inflation period right now and scaredycat is thinking about buying now w/ FHA and walk if he becomes upside down. Which is 3.5%. Which, I think is likely to happen if he buys now. Right now is not a time to speculate in a house that is also your primary resident. Especially if you have a screen name of scaredycat.
Agreed, walking on a 3.5% downturn is just silly. Hell almost everyone loses a ton of money when they first move into a house. The transaction costs of buying and selling are huge.
I’d say the reason to go FHA is if you expect high inflation in the future and you’d rather keep your cash somewhere safe. Of course you pay a penalty for doing so, it probably doesn’t make sense for everyone.