The minimum down payment is 3.5%, not 3%, and if you have less than 20% you will need PMI. But not all lenders are the same - look for great service, responsiveness and good recommendations. FHAs are harder to close so you want someone knowledgable and hardworking.

I thought all FHA loans require a PMI?

Yes, it matters. Different lenders have different minimum credit scores for FHA loans and offer different rates. The interest rate is not set by the govt. If you have excellent credit you may be able to find a 3% down payment option with no PMI. Also, lenders charge different fees (loan origination being the largest), doing some research can save you thousands.

If the interest rate and required down payment is already set by the govt, it wouldn't make a difference who you go with...right?