- Guide to Choosing the Right Fit -
Buying a home isn’t one-size-fits-all. The right loan depends on your credit profile, goals, and the length of time you plan to own the home. Below is a simple breakdown to help you understand your options - I’ll work closely with your lender to help determine what makes the most sense for you.
FHA Loan
What it is:
A loan insured by the Federal Housing Administration, designed to make homeownership more accessible.
Often a good option for buyers who:
- Are newer to homeownership
- Have lower or rebuilding credit
- Want to minimize upfront cash
What to know:
- Lower credit score requirements (often around 580+)
- Down payment as low as 3.5%
- Mortgage insurance is required for the life of the loan (unless refinanced)
- Stricter appraisal and property condition standards
- Easier to qualify upfront, but typically higher long-term cost
Conventional Loan
What it is:
A loan offered through private lenders following Fannie Mae and Freddie Mac guidelines.
Often a good option for buyers who:
- Have stronger credit
- Are planning to stay in the home longer
- Want more flexibility long-term
What to know:
- Credit scores typically 620+
- Down payment options starting around 3–5%
- Mortgage insurance can be removed once enough equity is built
- More flexibility with property condition
- Often lower monthly costs over time
Which Option May Be Better for You?
An FHA loan may make sense if:
- Your credit score is still improving
- You need a lower down payment
- You’re focused on getting into a home sooner
- You’re comfortable refinancing later if needed
A Conventional loan may make sense if:
- You qualify with a stronger credit profile
- You want mortgage insurance that isn’t permanent
- You’re thinking long-term about monthly costs
- You want more flexibility when making an offer
What does it all mean?
FHA loans are often easier to qualify for upfront, while conventional loans tend to offer better long-term savings if you qualify.
I’m here to help you weigh these options and coordinate with your lender so we choose the path that best supports your goals — not just today, but down the road.