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.
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
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.
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.
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.
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.
Secure your FHA or Conventional Loan at One of Our Branches
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.
Hear From People Who Loved Working With Us
Our clients come first, and communication and transparency are our goal. See what they’re saying about working with us.
We Have Answers
What’s Happening in Absolute Life
Follow us with the latest and greatest happenings with Absolute Life.
Whether you’re looking to buy or refinance, we have a loan program for you. Get started on the road to accomplishing your mortgage needs with us at Absolute Home Mortgage.