I think you should be able to change a lot of things in your financing. I mean you can come at the sellers with a 35% down payment then later change that to 5%-10%. I'd like to see what others have to say about this. At least with a conventional you would be able to drop your PMI without having to refi.
Just compare the APRs on the two loans and make your decision based upon that---my guess is that the difference in APR isn't likely to be much more than .5% and therefore, unless you plan on paying extra principle early on in your home ownership/loan amortization cycle there's really nothing wrong with the FHA loan, imo.
Ask your lender to give you presentation for both products so you know the difference. FHA has draw back to not cancel the MI for the life of loan if you have lower down payment. But interest rate is lower and MI payment is lower compare to conventional loan.