I don't know the answer about subsidy recapture. Below little bit about the different types of loans, that I create for one of my blog posts on my website. Hope it helps.
If your goal is long term rentals with the tenant paying them off. Than the less down is better. Unfortunately there are hidden costs in pmi and funding fees. We used VA loans when we first got started for personals. Now that we have used up that funding source we use conventional 5%. If USDA had been available we probably would have used that source.
FHA-
*First Time Home Buyer Only One Allowed
*3.5% down
* Life time pmi and a funding fee.
*strict appraisal guidelines
USDA
*First Time Home Buyers
*Available in underprivedged areas as deemed by the last census
*Funding fee and pmi
*0% down and is only for 1st time home buyers
*strict appraisal guidelines
VA
*Qualified Veterans
*No 1st Time Homebuyer Limit
*Funding fee (increases after every VA Loan
* to 417k (some high COLA cities are higher), balance above $417k is 25% down
*VA interest rates are the lowest current available
*strict appraisal guidelines
Conventional-
*Available 5%, 10%, 15% and 20%
*PMI is on any loan under 20%
*Available to anyone, it is consider the traditional mortgage.
*Liberal Appraisal Guidelines