FHA or traditional for new development condo

[Jesse Whitmore]

Howdy! I am planning on getting a newly developed detached condo in Taylor, Tx. Called the boxwoods at Taylor, http://theboxwoodstaylor.com. I currently have enough liquid to comfortably put 5% down and my parents are going to match that and co-sign with me. I recently just got out of debt, which is why my liquid is low, and the reason I am buying is it’s new and pretty cheap for the Austin area, by the end of my apartment lease, once rent goes up it will be equal to the mortgage payment of this place, looking at ~165-170k after upgrades and lot placement.

I'm stuck on what kind of mortgage I should get. If I go through my credit union(s), A+ & Penfed, I can put 5% down, and get a shittier rate of course, and the loans would be traditional. Or I can go through another lender and possibly get an FHA. I'm more skeptical than convinced on the benefits of an FHA and would love some advice. Thank you for reading!