[jodi]

Regarding FHA loans...I have never met a seller that will not sell to a purchaser using an FHA loan. However, I have worked with MANY that chose to go with an offer for a conventional loan over a similar offer with an FHA loan. So in that sense they are better, but it is true that an FHA appraiser (who works for the bank - not to be confused with a home inspector, who works for you) will be more picky in terms of peeling paint, handrails, broken windows, etc. They are working to protect the bank's interest, which is greater if you are only putting 5% or less down (as compared to conventional, when you have a 20% down payment as your investment in the house, and therefore, less risk for the bank). However, like anything, that varies greatly by inspector and by area.