FHA vs Conventional Loan

Two of the most common loan types are FHA and conventional. Each has strengths, and the best choice depends on your credit, down payment, and long-term plans.

Credit and Down Payment

FHA loans tend to be more forgiving on credit and allow 3.5 percent down. Conventional loans often want stronger credit but can start as low as 3 percent down for qualified buyers.

Mortgage Insurance

Conventional PMI can be removed once you reach about 20 percent equity. FHA mortgage insurance often lasts the life of the loan unless you refinance later.

When FHA Makes Sense

FHA can be the better path if your credit is still improving or your down payment is small.

When Conventional Makes Sense

Conventional often wins for buyers with strong credit who want to avoid long-term mortgage insurance.

Let's Compare for Your Situation

As your REALTOR, I can connect you with lenders who'll run both scenarios side by side. Reach out and we'll find the loan that costs you less.