I also used an FHA loan but I bought a HUD home (basically a government owned foreclosure) and it only required 3% down. There are quite a bit of really good HUD deals on the main HUD website. Hopefully this isn't breaking any rules :
www.HUDhomestore.com
You bid on the homes through a HUD agent and since the gov't just wants to get rid of them so you can usually get the home for 80-90% of list price. Our home was appraised for tax purposes as $145k, it was listed at $128k, we bid $118k and got it.
Make sure you see the house first as some HUD homes are in need of repairs since they are houses people just walked away from a year or so ago. We got lucky and ours needed nothing.
We got locked in at 3.5% interest last year (not sure what they are right now, but still better than what they were for the last 15-20 years) and still have to pay mortgage insurance (it is calculated as a percentage of what is borrowed until yo have 20% equity, our home was $118k and it is about $120 a month or so??). We also have the home owner's insurance and property taxes which brings our total monthly payment to $828. We paid almost $700 for rent at our apartment.
In terms of being afraid of the commitment-I was too. But I looked specifically at foreclosures and HUD homes only. I figured these property values had already bottomed out and at the very least I would sell it for what was owed on the note after school and break even. The reality is that a foreclosure home gains value the second you buy it because when you go to sell it it is not being sold as a foreclosure. The market is improving and home values are slowly increasing. If you buy a home in this manner, you really run very little risk of losing more money than you would in an apartment. It would probably cost $28,000 to rent for the next 4 years. By purchasing a house, you are investing that $28,000 in something that has a great potential to increase in value and allow you to recoup all (and in some cases MORE) of the money you put into it.
I cannot speak to the subject of condo's or even private seller homes for that matter. I do know that after all my research a HUD home was what worked best for me.
PM me if you have any HUD specific questions.