What is a conventional loan versus an FHA loan?

An FHA loan is a mortgage backed by the Federal Housing Administration. This type of loan uses lower interest rates and less strict credit score requirements. Conventional loans are not backed by a government agency and often use conforming loan limits. While both FHA and conventional loans come with benefits, you should compare their requirements to find the best fit. You can also use our mortgage loan calculator to help see which loan will better serve your financial needs.

Can I switch from an FHA loan to a conventional loan?

Yes, you can refinance your FHA loan into a conventional mortgage. However, you should keep in mind that conventional home loans typically use higher credit score requirements. If you’re planning to refinance to a conventional loan, make sure to check your credit score first.

How much of a down payment do I need for an FHA loan?

FHA loans require a minimum down payment of 3.5% of the purchase price. If you have a credit score between 500 and 579 you may be required to put 10% down to qualify.

FHA Vs. Conventional Loan: What Are They?