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FHA loan vs Conventional loan
FHA and conventional mortgages both let you buy a home, but qualification, insurance, and long-term cost differ. Here's how they compare.
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Feature
FHA loan
Conventional loan
Min down payment
3.5%
3% (5%+ typical)
Min FICO score
580
620–660
Mortgage insurance
For life of loan (usually)
Drops at 78% LTV
Debt-to-income cap
Up to 57%
43%–50%
Loan limits
County-based, lower
Higher conforming limit
Property condition
Strict FHA appraisal
Standard appraisal
Our take
FHA wins when your credit or savings are limited. Conventional wins when you can put 5%+ down and want to drop mortgage insurance over time.
Common questions
Can I refinance FHA to conventional later?
Yes — many borrowers refinance to conventional once they hit 20% equity to drop mortgage insurance.
Is FHA only for first-time buyers?
No. FHA is open to any qualifying primary-residence buyer.