FHA loans have been touted recently as a great mortgage option because they offer lower interest rates and are easier to qualify for.

But easiest doesn’t always equal cheaper or better.

Because they are insured by the Federal Housing Administration, the mortgages allow down payments as low as 3.5 percent and have less stringent underwriting guidelines than conventional loans.

But they carry a price sometimes significantly higher than that of a conventional loan.

FHA interest rates may seem slightly lower than those of conventional loans, but they can end up being more expensive because mortgage insurance costs are included in the monthly mortgage payments.

Loans with less than 20 percent down generally have to carry mortgage insurance, but the insurance on FHA loans is more expensive than on conventional loans. In addition, FHA borrowers are charged an up-front fee of 1 percent of the total loan amount, often added to the total amount borrowed.

For buyers who don’t have at least 5 percent for a down payment or whose credit scores are not high enough to qualify for a conventional loan, an FHA loan may work.

Unlike with conventional loans, FHA allows borrowers to receive down payment money as a gift from a relative.

For a conventional loan, a borrower must demonstrate that at least 5 percent came from his own savings.

Those who went through bankruptcy or foreclosure between two and five years ago may benefit from an FHA loan, said Jack Guttentag, a finance professor emeritus at the University of Pennsylvania’s Wharton School. Conventional loans require a five-year wait, he said.

In general, a borrower with a credit score above 720 who can put down 20 percent should stick with a conventional loan, said Matt Hackett, underwriting manager at Equity Now, a direct mortgage lender in New York City.

A mortgage broker or loan officer should be able to provide a detailed comparison of an FHA loan and a conventional loan, including up-front fees, mortgage insurance costs, and monthly payment estimates.