FHA vs. Conventional: Which Loan Actually Costs Less?

FHA and conventional loans get compared constantly, but the "which is cheaper" answer depends heavily on credit score and how long you plan to stay in the home.

FHA loans typically offer more forgiving credit requirements and a lower minimum down payment, but come with mortgage insurance that, depending on your down payment, may last the life of the loan.

Conventional loans can require stronger credit, but private mortgage insurance drops off automatically once you reach 20% equity — which can make them cheaper over a longer holding period even with a slightly higher rate.

The right answer is specific to your credit profile and timeline, which is why this is worth running as an actual comparison rather than a rule of thumb.