FHA Home Loans vs. Conventional Mortgage 

So you’re in the market for a new home in Florida! Maybe you have somewhat of a low credit score, or perhaps don’t have the ability to put down a significant down payment of 10 to 20 percent.

Many prospective home buyers in situations like these often turn to FHA home loans, which make buying a home both possible and more affordable, at least from down payment perspective. But with FHA loans being so different than a conventional mortgage, it’s also important to understand what each has to offer, and whether or not an FHA home loan is right for your individual situation. And in order to help you make that determination, here’s a quick look at just some of the differences between an FHA home loan and a traditional mortgage.

FHA Home Loans

Conventional Home Loans

Primary Purpose

Primary Residence Only Primary Home; Secondary Home;
Investment Property; Vacation Home

Down Payment

3.5% Minumum Varies; Usually 5% Minimum

Credit Score

Minimum 580 Credit Score Minimum 620 FICO Score Typically Required

Mortgage Insurance

Required Required w/ Less Than 20% Down

Additional Fees?

Upfront Mortgage Insurance Premium;
Usually 1.75% of the Loan Amount
Lender Dependent