We’ve ran through the calculation before and the bottom line is, there are extra cost associated to FHA up front (extra fees) and over time (PMI & higher rates). Only you know your comfort level and job security. You have to decide whether it’s worth it to pay more for the house if it means you’ll have more cash reserve. My personal answer is no, but that’s just me. Why pay more than I have to just for the option of walking away or maybe get some gov. bailout.
