Quick Overview
Understanding the fundamental differences between FHA and Conventional loans
FHA Loan
Government-backed loan designed to help more people qualify for homeownership
Lower down payment (3.5%)
More flexible credit requirements
Higher debt-to-income ratios allowed
Mortgage insurance for life of loan*
Conventional Loan
Private loans that offer more flexibility and can be more cost-effective long-term
PMI can be removed at 20% equity
Higher loan limits available
More property types eligible
Stricter qualification requirements