Great News! Fannie Mae has added back the 3% down option, allowing 97% loan to value conventional loans. With this option available, it would only make sense to use FHA if there is another compelling reason. As of 2013, putting less than 10% down on an FHA causes the Annual (monthly) Mortgage Insurance to be permanent to the loan. Federal Housing Administration an option to refinance out of the mortgage insurance if the value is less than 78% just like any other loan.