FHA loans often suit buyers with lower credit scores or smaller down payments, while conventional loans can cost less over time for borrowers with stronger credit and some savings.
FHA basics
FHA loans are government-insured and typically require 3.5 percent down with more flexible credit guidelines. They include upfront and annual mortgage insurance premiums.
Conventional basics
Conventional loans can start near 3 percent down, and private mortgage insurance can drop off once you reach sufficient equity. Pricing often improves with higher credit scores.
How to choose
Compare the total monthly payment, upfront costs, and long-term cost for both loan types using your actual numbers. A licensed loan officer can run side-by-side scenarios for you.
Frequently Asked Questions
Is FHA only for first-time buyers?
No, repeat buyers can use it too, subject to guidelines.
Which has lower mortgage insurance?
It depends on your credit score and down payment.
Can I refinance later?
Often yes, which many buyers do as credit or equity improves.
Talk to The Saward Team
The Saward Team helps buyers and sellers across Downriver Michigan with local pricing, honest advice, and a clear plan. Call or text 734-322-3302, see what your home is worth, browse our buyer services or seller services, or read more answers on our FAQ page. This article is general information, not legal, tax, or financial advice; consult a licensed professional about your situation.