FHA vs. Conventional: Which Is Right for You?
These are two of the most common loans, and neither is better for everyone.
FHA loans are built for flexibility. Most conventional mortgages require a 620 credit score, while an FHA loan can be possible at 580, or even lower with at least 10% down. One tradeoff: every FHA loan requires mortgage insurance, regardless of how much you put down.
Conventional loans often suit buyers with stronger credit or more savings. Conventional mortgage insurance ends once you reach 20% equity, while FHA mortgage insurance can last longer.
Keep in mind that published minimums aren’t the whole story. Some lenders add their own credit requirements on top of the official FHA minimums. That’s one reason it helps to compare more than one lender.
Which Fits You?
The right choice depends on your credit score, your savings, how long you plan to stay, and your monthly budget. I can run the numbers on both side by side so you can see the difference in real dollars.
Let’s Talk About Your Homebuying Plans
I’m Bob French, an independent mortgage loan officer serving Greater Atlanta. I’ll help you compare financing options and understand the numbers.
Bob French · NMLS #2333469 · David Kilpatrick Financial LLC · NMLS #1574879. This article is general information, not a loan offer or a commitment to lend. Loan programs, limits, and requirements change and are subject to underwriting and lender requirements.