My advice, put the minimum 3.5% down with the FHA and hold onto your cash. Not much a need to throw a few extra hundred into the deal when you can hold onto your money for painting, flooring, furniture, etc.
Bank of America Home Loans
With FHA you may have some down payment required, or may not depending on the type loan they get for you, but you will have costs if you are using a mortgage broker. They often charge 1%, plus processing fee, underwriting fee,and a broker's fee to name a few.
The bottom line is you are getting a good rate, and either FHA or conventional loans will get you into a home you want. If the lender can get you into the home for 5% down or less, and you are good with that, enjoy your new place!