Scaredy the best thing you can do is run the numbers for both scenarios. This is something you can very easily do yourself. Talk to people offering conventional financing and FHA financing and see the difference in a few different scenarios. The primary difference will be in the closing costs and the monthly payment right?
The thing that is troubling is that you are making an implication that you are simply wanting to buy because of financing opportunity. I understand that you feel like you are “missing out” and that is common. I am just not so sure it is the best reason to buy a home.
I guess I would say that if you feel you have no obligation to pay a creditor then the answer is obvious and you should finance as much as possible. It is unfortunate that you feel that way but understandable. Your actions reenforce the ideas that indeed if we did have a revamped lending policy for homeowners to have large equity stakes in homes, we would have a much more stable housing market that in turn would also be more affordable.
However the govt makes the rules to the game, and the game is rigged. Your points are valid and really cannot be argued against given the walkaway mindset in case of continued depreciation. I would go the FHA route.
