How the programs differ
FHA loans are insured by the Federal Housing Administration and use FHA eligibility and property standards. Conventional loans are not government-insured and may follow conforming or lender-specific guidelines.
- Credit and qualifying requirements
- Upfront and monthly mortgage insurance
- Down payment and eligible funds
- Property condition and appraisal rules
- Loan limits and occupancy requirements
Mortgage insurance matters
FHA financing generally includes upfront and annual mortgage insurance. Conventional private mortgage insurance depends on factors such as loan-to-value and credit profile and may have different cancellation rules.
Compare the complete scenario
An FHA loan may be useful for some borrowers with limited down payment or credit challenges. Conventional financing may be attractive for borrowers with stronger profiles or specific property and insurance goals. Request a side-by-side comparison using the same purchase price and assumptions.
Common questions
Frequently asked questions
Is FHA only for first-time buyers?
No. Eligible repeat buyers may use FHA financing when the occupancy and other program requirements are met.
Which loan has the lower payment?
That depends on the interest rate, mortgage insurance, down payment, credit profile, taxes, insurance and loan structure. Compare complete estimates for the same scenario.
Can FHA mortgage insurance be removed?
FHA mortgage-insurance duration depends on the loan terms and initial loan-to-value. Some borrowers later evaluate refinancing, subject to eligibility and market conditions.