Which is better? Our real estate agent told me it would be better if we go FHA because of lower down payment than convential. Sure we love to pay the 3% down pay but it is really a good idea? I tried looking at Clark Howard's site for some information and it didn't say much. So which is the difference? Our house is on a convential loan for 30 years, been living in it for almost six years. I found a nice half acre house outside of town that we want to move in but we have not put our house up on the market yet. I have to get a pre approval loan from the bank tomorrow and see if we can really afford it. Despite of the news that most people should not relocate when th ehousing market is bad. There has not been any change in my disablility payments and hubby's salary is not losing that much more despite of the hours increase or decrease weekly but it comes out pretty much even. Our mortage rates were 6.5 on our house and right now our bank offering 5.375% interest rates. How much lower can the seller go? This house we found was on the market for $59,900 and it is 880 sq ft house, yes it is twice smaller than our house but very good location and very good schools for DD and can have my chickens there even the neighbors are in close approximately but plenty of trees out back and front yard is the park of a little over 2000 acres. As for our house, we would need at least $10,000 for closing costs, taxes, agent fees, etc. If we can pay off what we owe, I think we can come out ahead but the problem is the down payment and additional fees needed to complete the close date. We both are not first time home buyers so any "first home buyers" grants we will not qualify. However we would like to have some "assistance" in down pay or some type of grant that you must live in the home for five years or we must pay it back if we move out before the fifth year is up. Your inputs please!