Different types of mortgage loans? What would be best for me?

Hi everyone. My husband and I countered an offer on our house and we are looking for a new house. THe house we are wanting is 138K. We both have really good credit scores and can afford a little bit down, but would rather not if we don’t have to. My broker which is my friends husband is suggesting a FHA loan that requires a 3.5% down payment. What are the benefits from this loan and is there another route we should take? Please advise!!!!!

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