FHA vs Conventional Loan Calculator
The right loan depends on your credit score and down payment. Enter your numbers and see a side-by-side comparison of FHA and conventional — monthly payments, mortgage insurance, and total 5-year cost.
What you'll need
- Home purchase price
- Down payment amount
- Expected interest rate
- Your credit score range
What you'll get
Side-by-side monthly payment
FHA vs conventional
Mortgage insurance breakdown
MIP vs PMI
5-year total cost
True cost comparison
Insurance cancellation
When each drops off
How it works
Enter purchase price
Input your target home price and available down payment amount.
Compare loan types
FHA requires 3.5% down; conventional requires 3–20% depending on credit score.
See total cost difference
Compare MIP vs PMI, monthly payment, and 5-year total cost of each loan type.
FHA vs Conventional: $350,000 Home, 5% Down
| Metric | FHA Loan | Conventional |
|---|---|---|
| Down payment | $17,500 | $17,500 |
| Upfront MIP/Fee | $5,792 | $0 |
| Monthly MIP/PMI | $222/mo | $168/mo |
| Total 5-year cost | $211,000 | $196,000 |
Conventional PMI drops off at 80% LTV; FHA MIP lasts the life of the loan (with <10% down).
Frequently asked questions
When is an FHA loan better than conventional?
FHA loans are often better for buyers with credit scores below 680, since conventional PMI rates are very high at lower credit scores. FHA is also more lenient on DTI ratios. However, FHA's lifetime MIP (for down payments under 10%) can make it more expensive long-term than conventional.
When is a conventional loan better than FHA?
Conventional loans are often better for buyers with 680+ credit scores. Conventional PMI is cancelable once you reach 20% equity — unlike FHA MIP, which may last the life of the loan. With a 20% down payment, conventional loans have no mortgage insurance at all.
What credit score is needed for a conventional loan?
Most conventional loans require a minimum 620 credit score, though 680+ gets significantly better PMI rates. For the best conventional rates with no or low PMI, aim for 740+. FHA loans are available with scores as low as 580 (3.5% down) or 500 (10% down).
How does down payment affect FHA vs conventional choice?
At 3–5% down with credit below 680, FHA typically wins on rate and PMI cost. At 5–10% down with credit above 680, run the numbers — conventional PMI may be lower. At 20%+ down, conventional is almost always better because there's no mortgage insurance at all, whereas FHA MIP is unavoidable regardless of down payment.
Can I switch from an FHA loan to a conventional loan?
Yes — refinancing from FHA to conventional is a common strategy to eliminate MIP once you have 20% equity. You'll need a 620+ credit score and sufficient equity to qualify for conventional. The savings can be significant: eliminating $200–$300/month in MIP often makes the refi worthwhile even with closing costs.
Ready to find the better loan?
Compare FHA vs Conventional →State guides
How this varies by state
Property taxes, insurance costs, first-time buyer programs, and closing costs differ significantly across states. See local data for your state.
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