FHA vs. Conventional Loans

Compare two of the most popular loan options to find the right fit for your goals.

FHA and Conventional loans are two of the most popular ways to buy a home. They each have their own advantages, depending on your credit, savings, and long-term goals. Understanding the basic differences can help you feel more confident as you explore your options.

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FHA and Conventional Loans Are Good For:

FHA loans are often a better fit for homebuyers who have a lower credit score or less saved for a down payment. They are especially helpful for first-time buyers who need more flexibility. Conventional loans are usually the better choice for those with stronger credit and a bit more saved up, especially if you plan to stay in the home long term and want to avoid mortgage insurance later on.

FHA and Conventional Loan Details

Loan Type Basics +

FHA loans are backed by the government and designed for accessibility, especially for buyers with lower credit or limited savings. Conventional loans are not government-insured and tend to offer better long-term savings for those with stronger credit profiles.

Down Payment Options +

FHA allows as little as 3.5% down. Conventional loans may start at 3%, but putting more down can reduce or eliminate mortgage insurance costs.

Cost Over Time +

FHA loans are often more affordable upfront. Conventional loans may offer lower total costs over the life of the loan, especially if you qualify for lower rates and can avoid extra fees.

Choosing the Right Fit +

Deciding between FHA and Conventional depends on your credit score, savings, and long-term goals. A loan officer can walk you through both options and help you decide with confidence.

Not Sure This Is the Loan You Were Looking For?

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Our team is here to make the decision easier. Whether you’re leaning toward FHA or Conventional, or not sure yet, we’ll walk you through each option with real numbers and honest advice. Reach out to your local branch to get started today.

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