When is FHA better than conventional?

FHA is typically better for credit scores below 620 or limited down payment. FHA rates are often 0.1-0.5% lower, but MIP is permanent (with less than 10% down), making it more expensive long-term.

What is FHA MIP vs conventional PMI?

FHA MIP has an upfront premium (1.75% of loan, often rolled in) plus 0.55-1.05% annual. Conventional PMI has no upfront premium, rates from 0.2-2%, and can be cancelled at 80% LTV.

How does credit score affect the FHA vs conventional decision?

620-679 credit: FHA often wins on rate. 680-739: toss-up. 740+: conventional wins clearly. Fannie Mae pricing is punitive for scores below 680.

FHA vs Conventional Loan Comparison

Compare total cost of FHA loan (3.5% down, MIP for life) vs conventional loan (3-20% down, cancellable PMI). Shows breakeven and optimal choice by scenario.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Compare total cost of FHA loan (3.5% down, MIP for life) vs conventional loan (3-20% down, cancellable PMI). Shows breakeven and optimal choice by scenario. Use the fha vs conventional result to inform your calculation.

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FHA vs Conventional Loan Comparison

How to Use

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Frequently Asked Questions

When is FHA better than conventional?

What is FHA MIP vs conventional PMI?

How does credit score affect the FHA vs conventional decision?