FHA vs. Conventional Loans in 2025: Which Fits Your Mortgage Plan?
Evaluate FHA and conventional mortgages in 2025, including minimum down payments, mortgage insurance costs, and best-fit borrower profiles.
Why this article matters
- FHA loans allow 3.5% down with scores as low as 580 but require mortgage insurance premiums for most of the loan life.
- Conventional loans waive private mortgage insurance once you reach 78% loan-to-value or request removal at 80%.
- Higher credit scores and larger down payments typically favor conventional loans, while heavier debt loads may lean toward FHA flexibility.