FHA Loan or 3% Down Conventional w/ higher interest?

[Martin Ceja]

I've been talking to a few Mortgage Loan Brokers in my area (Inland Empire, CA) and asking them about FHA loans but most of them have been recommending a low down (3% down) conventional loan with a "higher interest rate" instead. Thoughts? Would a low down conventional be better than an FHA? Or would it be best to get an FHA (3.5% down) with PMI and refinance after a couple of years? All help appreciated, thanks!