Introduction
Two of the most common mortgage types are FHA and Conventional loans — but they cater to different borrowers. Understanding the pros and cons of each can save you thousands and help you qualify faster.
Down Payment
- FHA: As low as 3.5%
- Conventional: As low as 3% (first-time buyers)
Credit Score Requirements
- FHA: 580 minimum (sometimes lower with more down)
- Conventional: Typically 620+
Mortgage Insurance
- FHA: Required for the life of the loan
- Conventional: Cancelable at 20% equity
Loan Limits
- Both loans have maximum amounts, but Conventional loans may offer higher flexibility in some high-cost areas.
Which Is Better?
- Choose FHA if you have lower credit or need help qualifying.
- Choose Conventional if you have good credit and want long-term savings on mortgage insurance.
Final Thoughts
Still unsure which loan is right for you? Contact us for a free consultation — we’ll walk you through the best options based on your profile.
