Conventional vs FHA — Which Loan Is Better?
A side-by-side comparison of the two most common loan programs.
A side-by-side comparison of the two most common loan programs.
- Conventional loans usually win when your credit is strong (720+) and you can put down 5% or more, because your mortgage insurance is cheaper and drops off automatically at 78% loan-to-value.
- FHA usually wins when your credit is in the mid-600s or you have limited savings — the base rate is often lower and guidelines are more forgiving on credit and debt-to-income.
- Rule of thumb: get quoted on both, then compare monthly payment and 5-year total cost, not just rate.
What does this guide cover?
Conventional loans usually win when your credit is strong (720+) and you can put down 5% or more, because your mortgage insurance is cheaper and drops off automatically at 78% loan-to-value.
FHA usually wins when your credit is in the mid-600s or you have limited savings — the base rate is often lower and guidelines are more forgiving on credit and debt-to-income.
Rule of thumb: get quoted on both, then compare monthly payment and 5-year total cost, not just rate.
Frequently asked questions
What is the conventional vs fha — which loan is better? about?
A side-by-side comparison of the two most common loan programs.
What are the key points to know?
Conventional loans usually win when your credit is strong (720+) and you can put down 5% or more, because your mortgage insurance is cheaper and drops off automatically at 78% loan-to-value.
How does this work in practice?
FHA usually wins when your credit is in the mid-600s or you have limited savings — the base rate is often lower and guidelines are more forgiving on credit and debt-to-income.
What should I do next?
Rule of thumb: get quoted on both, then compare monthly payment and 5-year total cost, not just rate.
How can I talk to a NEXA loan officer about my situation?
Contact Renato Rodic (NMLS #1615600) via the Contact page or book a 1:1 call — he can review your specific scenario and walk you through the relevant NEXA loan program or onboarding path.
References
Conventional vs FHA — Which Loan Is Better?. Ask About NEXA. https://askaboutnexa.com/guides/conventional-vs-fha. Last updated June 18, 2026.