FHA Loans: The First-Time Buyer Favorite
FHA loans are insured by the Federal Housing Administration and designed for buyers who may not qualify for conventional financing. You can get an FHA loan with a credit score as low as 580 with 3.5% down (or 500 with 10% down). The trade-off: you'll pay mortgage insurance for the life of the loan.
Conventional Loans: More Options, Stricter Standards
Conventional loans aren't backed by the government, so they typically require stronger credit (usually 620+) and may need larger down payments. However, they offer more flexibility on property types and loan amounts. If you put down 20%, you avoid private mortgage insurance entirely.
Choosing the Right Loan
There's no universally "best" loan—it depends on your situation. Lower credit? Consider FHA. Veteran? VA is usually the best deal. Rural area? Check USDA. Strong credit with savings? Conventional might save you money long-term. A good loan officer will show you multiple options.
