A government backed purchase loan that makes it easier for some borrowers. Minimum required FICO, generally 580, but some programs go all the way down to a 500 FICO score.
There is a funding fee added to the loan balance and mandatory PMI. If you put down less than 20% the PMI can only be removed if you refinance. If you put down 20% or higher, the PMI stays with the property for 11 years.
Better to own than rent in today’s market, so if this is the loan you can qualify for, compare it to current rental rates to see if you come out ahead. With the increase in equity over time and tax credits, you are probably better off owning.