Two of the most popular mortgage options for Florida homebuyers are conventional and FHA loans. While both can help you purchase a home, they have distinct differences that may make one a better fit for your situation. Here’s a clear comparison to help you decide.
Down Payment Requirements
Conventional: As low as 3% down for qualified buyers. If you put down less than 20%, you’ll typically need private mortgage insurance (PMI), which can be canceled once you reach 20% equity.
FHA: Requires a minimum 3.5% down payment. FHA mortgage insurance premium (MIP) is required for the life of the loan on most FHA loans, which is an important long-term cost consideration.
Credit Score Requirements
Conventional: Typically requires a credit score of 620 or higher. Borrowers with scores above 740 receive the best rates.
FHA: Accepts credit scores as low as 580 with 3.5% down, or 500 with 10% down. This makes FHA a strong option for buyers still building their credit.
Property Requirements
Conventional: More flexible property standards. Can be used for primary residences, second homes, and investment properties.
FHA: Stricter property standards — the home must meet HUD safety and habitability guidelines. FHA loans are only for primary residences, not investment properties.
Which Should You Choose?
Choose conventional if you have good credit (620+), can afford a modest down payment, and want to avoid permanent mortgage insurance. Choose FHA if your credit score is below 620, you want a lower barrier to entry, or you’re a first-time homebuyer who values flexibility.
Not sure which path is right for you? Use our comparison tool or speak with a Lending Haus specialist for personalized guidance.