Comparison
FHA vs. Conventional Loans
Two of the most popular mortgage options — but they work very differently. This guide breaks down the key differences so you can choose the right one for your situation.
Side-by-Side Comparison
| Feature | FHA Loan | Conventional Loan |
|---|---|---|
| Minimum Down Payment | 3.5% (with 580+ credit score) | 3%–5% (with 620+ credit score) |
| Minimum Credit Score | 580 for 3.5% down; 500 with 10% down | 620 for most programs |
| Mortgage Insurance | Required for the life of the loan (if <10% down) | Required until 20% equity; then removable |
| Loan Limits (2026) | Up to $524,225 in most FL counties | Up to $806,500 (conforming limit) |
| Debt-to-Income Ratio | Up to 57% with compensating factors | Typically 45%–50% max |
| Property Condition | Must meet HUD minimum standards | More flexible on property condition |
| Interest Rates | Often slightly lower | Slightly higher but no lifetime MIP |
Which Is Right for You?
FHA
FHA is usually better if you…
- Have a credit score between 580–639
- Have limited savings for a down payment
- Have a higher debt-to-income ratio
- Are buying your first home
Conventional
Conventional is usually better if you…
- Have a credit score of 680 or higher
- Can put 10–20% down
- Want to remove mortgage insurance later
- Are buying a higher-priced home
Not Sure Which Loan Is Right for You?
Our loan officers will run the numbers on both scenarios and show you the real difference in monthly payment and total cost.
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