FHA loans often fit buyers with lower credit or smaller down payments, but every FHA loan carries insurance, and <10% down can mean lifetime premiums.
Conventional loans usually require stronger credit, yet they offer flexibility: primary, second, or investment homes, down payments as low as ~3%, and removable PMI.
In Early-Q3 2026, avg. 30-yr rates were high-6% for conventional and low-6% for FHA, but FHA's upfront and annual insurance can raise total cost.
Current US conforming conventional limits reached $832.8K in most areas, while FHA capped most borrowing at $541.3K and generally required primary-residence use and stricter standards.
Ask a lender for side-by-side costs: rate, cash to close, monthly payment, mortgage insurance, taxes, insurance, and how each loan looks over 5-7 yr.
Do you know how much home you can afford?
Most people don’t... Find out in 10 minutes.
Get Pre-Approved Today
