Conventional
FHA
- Offered by private lenders and not backed by the government.
- Require a higher credit score and a larger down payment.
- No PMI (Private Mortgage Insurance), if the borrower pays 20% down payment on purchase price.
- Insured by the Federal Housing Administration, making them less risky for lenders.
- Accepted with less credit score and lower down payment.
- Require upfront and ongoing mortgage insurance premiums regardless of the down payment amount.