1) Stainless is a material, CHF is a forging / rifling process. A stainless barrel can be cold hammer forged. Many of the target / varmint barrels that you see are just straight 416 Stainless Steel
2) A 12" is a standard rifle length handguard, more than adequate for most people's needs.
3) You really can't beat PSA's prices, but you can build it exactly how you want if you do decide to build. If I were you, I'd buy this and be done with it:
http://palmettostatearmory.com/index.php/catalog/product/view/id/16983/s/psa-14-7-chf-ml-lw-w-wilson-combat-trim-fde-12-rail-unpinned-with-out-bcg-or-charging-handle/category/4220/
14.7" barrel, 1:7 twist, special FDE color TRIM rail by Wilson Combat just for PSA. At $590, that's about what you could build it for, and you don't have to buy any extra tools, etc. You'll need to have a gunsmith pin & weld the bird cage... or if you want to find another compensator / flash hider, you wouldn't have to worry about unpinning the flash hider. You will need to have it pinned and welded before you put it on your upper, otherwise you are committing a felony of a SBR on a non-SBR lower.
You may also get into a grey area of constructive possession, but take care of it timely and you won't have any issues... But then again, this advice is worth what you paid for it.