FHA vs. Conventional: A Plain-English Comparison

Two of the most common loans for first-time buyers are FHA and conventional. Here is the friendly version.

FHA loans

• Backed by the Federal Housing Administration.
• Often allow a lower down payment.
• Can be more flexible with credit.
• Include mortgage insurance that may last for the life of the loan, depending on your down payment.

Conventional loans

• Not government-backed.
• Low down payment options exist for qualified buyers.
• Private mortgage insurance may be removable once you build enough equity.
• Credit requirements are usually a bit stronger.

Which is better?

It depends on your credit, savings, and plans. Sometimes FHA wins, sometimes conventional does. The right answer comes from comparing real numbers side by side.

Questions for your lender

1. What is my monthly payment with each option?
2. How long would mortgage insurance last?
3. How much cash do I need to close?
4. Are there down payment assistance programs I qualify for?

I am not a lender, but I work with wonderful ones and I am happy to introduce you. My job is to help you find the right home for the loan that fits you.

Have you talked with a lender yet, or is that still on your to-do list? Tell me in the comments. I read every one.

Thinking about buying or selling in the Valley? Call or text me at 480-572-2159, or visit lovingazhomes.com. First-time buyer? Watch my free webinar at lovingazhomes.com/first-time-buyers.

Tina Marie Miller, REALTOR®, DeLex Realty. Information is general and not legal, tax, or lending advice. Programs and amenities can change; please verify details.

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