conventional loan vs.fha loan

. more if you have a low credit score. fha mortgage insurance premiums last for the life of the loan if you make a down payment of less than 10%. You can get rid of FHA mortgage insurance by.

However, rates stated are representative of the differences you will see between the loan types. For comparison, assume a buyer is deciding between an FHA and conventional loan on a $250,000 home. All scenarios assume a 30-year fixed rate, single family home and 720-740 credit score.

[Read: The Best FHA Loans of 2018.] An FHA loan is a mortgage issued by a federally approved bank or financial institution that, unlike a conventional mortgage, is insured by the Federal Housing Administration. This mortgage insurance provides the security that qualified lenders need in order to take on a riskier loan.

FHA vs Conventional Loans, which is better? Are FHA loans good? Compare FHA loans and Conventional loans to help you decide which.