FHA is a government insured program meant to encourage home-ownership. Conventional loans are made by for-profit institutions such as banks or mortgage lenders. FHA has lower down payment, lower credit score and higher debt ratio requirements but, because of these things, there are more stipulations on the property condition; however, they do also have a program for "fixer upper" homes where you can also borrow the rehab costs. FHA loans always have an upfront and a monthly mortgage insurance and it cannot be dropped & they usually have a higher interest rate so they are more expensive; however, it is worth it especially for those who don't have a huge amount to put down. Conventional loans require better credit, more money down and lower debt to income ratios but they have better pricing. If you have to get MI on a conventional loan, you can have it removed once you have 20% equity in the house. Since the borrower is stronger, the collateral has more leeway so more things slide through a conventional appraisal than an FHA.
Each has its good points and, you may end up having used both types at some point in your life. Everything is dependent on where you are at in your life and what you need right now.