Resources / FHA vs Conventional Loan
FHA vs Conventional Loan
Both are common first-home loans. The right one depends on your credit, savings and how long you plan to stay.
Side by side
| FHA | Conventional | |
|---|---|---|
| Credit | More flexible | Pricing improves with score |
| Mortgage insurance | Upfront and monthly premium | Monthly PMI with a smaller down payment, removable at enough equity |
| Property standards | Stricter | Standard appraisal |
| Occupancy | Primary home | Primary, second home or investment |
When FHA tends to fit
- Credit is in the 580 to 660 range
- Your debt-to-income ratio is higher
- You want flexibility on gift funds and seller credits
- You plan to refinance later when credit improves
When conventional tends to fit
- Credit is strong
- You want mortgage insurance to drop off
- You are buying a second home or investment
- The property would not pass FHA standards
I run both with your numbers. Read the full pages on FHA and conventional loans.
Common questions
Does FHA mortgage insurance ever go away?
On many FHA loans it stays for the life of the loan unless you refinance. Ask me about your down payment and what applies.
Can I switch later?
Yes. Many buyers start with FHA and refinance to conventional when credit and equity improve.
Told no somewhere else? Call me.
I can’t promise a yes, but I’ll look at every option. Call or text, or meet in person.