So you could argue the fact that this is just my opinion, that FHA mortgages in many cases would be better for you. True, even though numbers don't lie. Let me show you..... and in this scenario,

The example below is based on a $300,000 purchase price with 5% down. One reason why conventional rates are a little higher in this scenario as in FHA rates is because Fannie Mae and Freddie Mac have added penalties per se. If you are putting down less than 30% and your credit score is less than 720, certain fee penalties would apply to you, which would increase your rate.  The FICO (credit score) that I am going to use is 679, which is above the average credit score and I will still show in this example that FHA loans are cheaper, even with 5% down.  

***And keep in mind, some lenders have penalties on FHA mortgages with credit scores under 660 now.  We don't. And many lenders can't do FHA loans under 620. I can still do them down to 600. Just beware of those promising you FHA loans under 600, they don't close as much as promised.***