The best choice depends on your situation:
| Factor | FHA | Conventional |
|---|---|---|
| Min. Credit Score | 580 (500 with 10% down) | 620 |
| Min. Down Payment | 3.5% | 3% |
| Mortgage Insurance | Required for life of loan (if <10% down) | Removed at 20% equity |
| Loan Limits | Lower FHA limits | Up to $766,550 |
FHA is better for lower credit scores. Conventional is better for buyers with 620+ credit who plan to build equity quickly.