We have become so accustomed to interest rates being low, and mortgage money plentiful, that we have pushed FHA loans to the sidelines over the past few years. They have been until recently relegated to lower priced properties...mostly condos. This has changed significantly in the past year in several ways which have made FHA loans suitable for a much wider range of property prices, including raising the maximum loan amount in our area to $729,750. A recent property in the Georgetown area sold for $1million+, and the buyer used FHA financing.
If (when?)interest rates rise, the fact that FHA loans are assumable will be an important factor. There is a good article in the Washington Post from this past Saturday, February 20th, titled "A hidden value to FHA loans". Click the link below.
A hidden value to FHA loans