FHA vs. Conventional
Two of the most common ways to buy a home. They look similar until you read the fine print.
FHA
Conventional
Best for
Buyers with limited savings or a bumpier credit history
Buyers with solid credit who want flexibility down the road
Down payment
3.5%
From 3%
Credit
More forgiving
Stronger credit gets the best terms
Mortgage insurance
MIP, with an upfront charge plus a monthly charge
PMI, which can come off once you build enough equity
Speed
As little as 14 days
As little as 14 days
Watch out for
MIP can stick around for the life of the loan unless you refinance
A lower credit score can make PMI cost more
Our take: If your credit is strong, Conventional usually wins on long-term cost. If you need more breathing room on credit or savings, FHA gets you in the door.
