FHA in plain language
FHA loans are made by approved lenders and insured by the Federal Housing Administration. Qualified borrowers may be eligible for a down payment as low as 3.5%, but mortgage insurance and county loan limits apply.
Conventional in plain language
Conventional loans are not insured by a federal housing agency. Some qualified buyers may access options with as little as 3% down. Private mortgage insurance is typically required below 20% down and may be cancellable after specific conditions are met.
Questions worth comparing
- Total monthly payment
- Cash to close
- Mortgage-insurance cost and duration
- Property-condition requirements
- Interest rate, APR, points, and credits
- How long you expect to own the home
The right answer is personal
A loan that looks cheaper on day one may cost more over your expected ownership period. Ask licensed lenders to model the same purchase price and timeline so you can make a true side-by-side comparison.
Educational information only. Real estate, lending, legal, tax, inspection, appraisal, and property decisions depend on individual facts and current requirements. Consult the appropriate licensed professionals.