FHA loan 3.5% Vs Conventional 3%

[Peter Bui]

Quick newbie question: 

So with the FHA loan, you will still have to pay premium insurance throughout the life of the loan. Isn't that the same as paying the PMI for a conventional loan if you don't reach that 20% down?

If this is true, why do people give such a good word for FHA loans?

Thanks

Peter Bui 

[Russell Brazil]

FHA loans should only be reserved for those with marginal credit or for multifamily. The 3% down Homeready loan from Fannie Mae is a much superior product, assuming good credit.