FHA vs. conventional — which loan is actually better?
Neither is universally better. FHA is easier to qualify for with lower credit and 3.5% down, but its mortgage insurance usually lasts the life of the loan. Conventional can start near 3% down and lets you drop PMI around 20% equity. Your credit, savings, and timeline decide it.
Neither loan is "better" across the board — they're built for different buyers, and the right pick comes down to your credit, your savings, and how long you'll keep the loan. Here's the comparison I actually walk clients through.
Where FHA usually wins: getting in the door
An FHA loan is the more forgiving of the two. Scores in the 500s can work, 3.5% down is allowed at a 580 score, and the qualifying math tends to flex more around existing debt. If your credit is still rebuilding or your savings are lean, FHA often turns "not yet" into "yes, now."
Where conventional usually wins: the long run
A conventional loan generally wants a stronger credit profile, but it rewards one. Qualifying first-time buyers can put down as little as 3% through Fannie Mae and Freddie Mac programs that remain active in 2026, and pricing improves as your score climbs.
The real fork in the road: mortgage insurance
This is where the two loans separate over time. On most FHA loans with less than 10% down, the monthly mortgage insurance premium stays for the life of the loan — the practical exit is refinancing later, which is often possible but never guaranteed. On a conventional loan, private mortgage insurance is removable: you can request cancellation once you've built roughly 20% equity, and it ends automatically at about 22% (per federal rules, verified August 2026). Same house, very different insurance story five years in.
How to actually decide
Ask a lender to price both side by side with your real numbers — score, down payment, and the full monthly cost including insurance. Sometimes FHA wins today even when conventional would win on paper, because a door you can open now beats a cheaper one you can't open yet. I'm not a lender, so I won't guess at your approval — my job is helping you read that comparison in plain English and match the payment to homes you'll actually love. If you're still exploring, see the full menu of first-time buyer loan options, including VA and USDA.
Once your side-by-side is in hand, let's talk through the Central Florida communities where your comfortable payment goes furthest.
This answer is general education, not legal, tax, or financial advice. Your situation is unique — let's talk through the specifics together.