I agree with Tom but I'll also add this: You should be able to get a great rate without putting down 20-30%.
Here is what I would do if I were you.
Compare the monthly payments between FHA and conventional and then calculate your break even point.
Here's what I mean.
As an example, let's say that your monthly payment is $200.00 cheaper going with a conventional loan and putting $40,000 down instead of the FHA minimum of 3.5% or $9,625.00 on a 275K purchase price. Now take the difference in down payment, $40,000 minus $9,625 =$30,375 and divide by $200 per month to get a break even point of 151 months or 12.65 years.
So basically what you're doing is paying an extra $30,375 right now to save $200 per month for the next 12+ years. Another way of looking at is that it will take you 12+ years of saving $200 per month to recapture the extra 30K+ you put down.
Please feel free to contact me for more information or if you would like me to run your actual numbers for comparison. You can also find info on my FHA Mortgage website by clicking the link below.
Senior Mortgage Banker
Peoples Bank & Trust