FHA vs. conventional — which loan is actually better?
Neither is universally better. FHA is easier to qualify for with lower credit and 3.5% down but usually carries mortgage insurance for the life of the loan. Conventional can start near 3% down and lets you drop mortgage insurance at about 20% equity. The right one depends on your credit, savings, and plans.
This is one of the most common questions I get, and the honest answer is: it depends on you.
FHA loans are government-backed and more forgiving — lower credit scores are okay and the down payment can be as low as 3.5%. The trade-off is mortgage insurance, which on most FHA loans today stays for the life of the loan unless you refinance.
Conventional loans aren't government-backed. They often need a slightly stronger credit profile, but first-time buyers can sometimes put down as little as 3% — and, importantly, you can request to drop private mortgage insurance once you've built about 20% equity. Over time, that can make a conventional loan cheaper.
So FHA often wins on getting in the door; conventional often wins on long-term cost if your credit is solid. A lender can run both side by side for your numbers — and I'll help you read the comparison in plain English, no pressure.
This answer is general education, not legal, tax, or financial advice. Your situation is unique — let's talk through the specifics together.