The FHA loan is not subsidized, does not contain any income restrictions and does not require any payback when the house is sold. With a gift and seller paid closing costs, the buyer is in a house for no recognizable investment of his own. So, no one is giving you a gift and the seller refuses to pay any closing costs for you. Some real estate professionals talk down the FHA loan. Fixing these deficiencies is good for the purchaser but is a cost and a nuisance to the seller and the real estate agent.
Some people desire to take the path that is easiest to travel and there is nothing wrong with that.
However, if you are a purchaser, the FHA loan will eliminate a lot of uncertainties and unexpected future costs. While the FHA loan does not have any income restrictions, it does limit the maximum loan amount available. Check with your local FHA financing specialist for the maximum loan in your area. Check with your local VA financing specialist to see if you have such benefits. The loan is assumable WITH the permission of the Department of Veteran's Affairs.