FHA vs. Conventional Loans: Which Fits You?

Two of the most common ways to finance a home are FHA and conventional loans. The right choice depends on your credit, savings and how long you plan to stay.

How FHA loans work

FHA loans are insured by the Federal Housing Administration, which allows more flexible credit and down payment terms. The tradeoff is mortgage insurance premiums. Read our full FHA loan page.

How conventional loans work

Conventional loans are not government-insured. Buyers with stronger credit and more savings may find they cost less over time. Read our conventional loan page.

Where they differ

Compare four things: down payment, credit requirements, how mortgage insurance works and how long it lasts, and total monthly payment. Terms vary, so ask Chris to price both for your situation.

Which is right for you?

There is no single answer. A side-by-side comparison with your real numbers is the best way to decide.

FAQ

Is FHA only for first-time buyers?

No. Anyone who qualifies can use it.

Can I refinance from FHA to conventional later?

Often yes once you have built equity. See our refinance calculator.

Helpful Resources

• HUD: FHA loan information
• CFPB: Owning a Home

Related: Programs | First-Time Homebuyer Guide | Mortgage Loans in Westminster, MD

Chris Nieberlein NMLS #313519 | Bay Capital Mortgage Corp. NMLS #39610 | Equal Housing Lender. General information, not a commitment to lend. Terms and eligibility vary and are subject to credit approval and underwriting.