Comparing FHA and Conventional Loans: Key Differences for Homebuyers

Understanding the benefits, requirements, and limitations of FHA and conventional mortgage options.

FHA loans are backed by the Federal Housing Administration and are easier to qualify for with lower credit scores and down payments.
Conventional loans are not government-backed and typically require higher credit scores and larger down payments but offer more flexibility.
Both loan types have different insurance requirements, with FHA loans requiring both upfront and annual mortgage insurance premiums.
Loan limits vary between FHA and conventional loans, with conventional loans generally offering higher borrowing limits.
Choosing the right mortgage depends on individual financial situations, including credit scores, down payments, and borrowing needs.