you pretty much summarized your options:
1. FHA w/ a 3% down but both upfront and ongoing MI
2. bigger down and a smaller MI ea mo
not enough down is a dilemma many face. your FICO is excellent. as a rule of thumb you may borrow up to 4-5x your annual gross income.
you ought to put something down... 0 down 0% interest only happened during the crazy time in '05-'06 though activities in Irvine is definitely getting there