★★★★★ Trusted by Florida home buyersServing all 67 Florida counties
📞 Call an FHA specialist: (888) 555-0142
Home/FHA vs Conventional Loan
FHA vs Conventional Loan

FHA vs. conventional loans

The two most popular mortgages compared — down payment, credit, mortgage insurance, and limits — so you can choose the right loan for your Florida home.

Down paymentCredit scoreMortgage insuranceLoan limits

Get your free FHA quote

No obligation. See your rate & payment in minutes.

🔒 Your information is secure. By submitting you agree to be contacted about FHA loan options. This is not a commitment to lend.

Thank you!

An FHA mortgage specialist will reach out shortly with your personalized Florida rate quote.

Compare

FHA vs. conventional loans

FHA and conventional loans are the two most common ways to buy a home in Florida. FHA is government-insured with easier qualifying; conventional is not government-backed and rewards stronger credit. Here's how they compare.

FeatureFHA LoanConventional Loan
Minimum down payment3.5% (580+ score)3%–5%
Minimum credit score580 (500 with 10% down)Typically ~620
Mortgage insuranceMIP: 1.75% upfront + ~0.55%/yr, often for the life of the loanPMI; cancellable around 20% equity
2026 FL loan limit (1-unit)$541,287 and up by county$832,750 and up by county
Best forLower credit or smaller down paymentStrong credit; avoiding long-term mortgage insurance

Which should you choose?

If your credit is in the 580–660 range or your savings are limited, FHA is often easier to qualify for and cheaper upfront. If you have strong credit (700+) and can put down more, conventional may cost less over time because you can drop PMI at 20% equity. Many Florida buyers start with FHA and later refinance to conventional once they build equity.

Questions & Answers

Frequently asked questions

Is an FHA loan better than a conventional loan?+
Neither is universally better. FHA is easier to qualify for with lower credit and a smaller down payment; conventional can be cheaper long-term for strong-credit borrowers because PMI cancels at ~20% equity.
Is it easier to get approved for FHA or conventional?+
FHA generally has more flexible credit and debt-to-income guidelines, so it's often easier to qualify for, especially for first-time or lower-credit buyers.
Can I switch from FHA to conventional later?+
Yes. Many Florida homeowners refinance from FHA to conventional once they reach about 20% equity to remove mortgage insurance.
Which has lower mortgage insurance?+
It depends on your credit and down payment. Conventional PMI can be cheaper with strong credit and cancels at 20% equity; FHA MIP is more accessible but often lasts the life of the loan with low down payments.
Keep Exploring

Related FHA resources

Not sure which loan fits?

Get a free comparison of FHA and conventional options for your Florida purchase.

Get Pre-Approved Now