FHA vs. Conventional Loans: What’s the Difference?

FHA vs. Conventional Loans: What’s the Difference?

‍When buying a home, one of the biggest questions is: FHA or Conventional? Here are some key differences:

Down Payment‍

FHA: As low as 3.5% downConventional: As low as 3% down for first-time homebuyers, or 5% down if you’ve owned before

Mortgage Insurance (PMI)

‍With FHA, mortgage insurance is generally the same regardless of credit score and can be more expensive long term. With Conventional, PMI is often much lower if you have strong credit and can eventually be removed.

‍Loan Limits

‍In many areas, Conventional loan limits are higher than FHA, which may give you more buying power depending on the price range you’re shopping in.

‍Self-Employed Borrowers

‍Conventional financing can sometimes be more flexible for self-employed borrowers, while FHA underwriting may be stricter in how income is averaged and documented.

‍Which One Is Better?There’s no “one-size-fits-all” answer. FHA can make qualifying easier. Conventional can save you more money long term. The right loan depends on your credit, down payment, income, and goals

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