Yes, there can be an advantage. A 20% down FHA loan for borrowers who have limited credit history. This avoids higher interest rates. One example is a recent graduatue, who has adequate income to qualify for loan.
Parent(s) can also buy a property to be used for college student. The parents puts 20% down, and has the student listed as one of the borrowers. This helps the student get a credit history. And, the student can rent out rooms to help cover the mortgage. At time of graduation, the property can be sold, and the cost of school housing is recouped. If the student wants to continue liveing there, the student can assume the loan that the parent(s) originally obtained. This is not usually the case in a conventional loan.
Another example where is can be helpful is for purchase after a division of assets in a divorce. If the income is there to qualify, the rate may be lower than the alt-a rate that may otherwise have to be used.
It is not uncommon for banks not to offer government loans such as FHA, VA, or Rural Housing. Not only does the institution need to want to provide these loans, they also need to be government approved to provide these loans. There is more paperwork required, and some banks do not want to be bothered with it. Carteret Mortgage Corporation a full service Mortgage Broker that DOES offer these government loans.