FHA Home Loans vs. Conventional Mortgage 

So you’re in the market for a new home in Minnesota. 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 a FHA home loan is right for you individual situation. And in order to help you make that determination, here’s a quick look at just some of the differences between a 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
Your Credit Score Minimum 580 Credit Score Minimum 620 FICO Score Typically Required
Mortgage Insurance Required? Required Required w/ Less Than 20% Down
Additional Fees? Upfront Mortgage Insurance Premium; Usually 1.75% of the Loan Amount Lender Dependent

START THE FHA HOME LOAN QUALIFICATION PROCESS NOW:

Find Out What Mortgages You Might Qualify For

Your Credit and Income

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