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Home Buying

FHA vs Conventional Loans

A side-by-side look at the two most common loan programs for Florida buyers.

6 min readBy NexGen Capital Corp · NMLS 1766649Updated 2026Home Buying

Short answer

A side-by-side look at the two most common loan programs for Florida buyers.

FHA allows FICO scores as low as 580 with 3.5% down. Conventional generally starts at 620 and allows 3%–5% down for qualifying buyers.

Credit and down payment

FHA allows FICO scores as low as 580 with 3.5% down. Conventional generally starts at 620 and allows 3%–5% down for qualifying buyers.

Mortgage insurance

FHA charges upfront and monthly MIP that usually stays for the life of the loan. Conventional PMI is monthly (or single-premium) and drops automatically at 78% LTV.

Which fits better

FHA often wins for lower scores or higher debt ratios. Conventional often wins on total cost when credit is strong. Your loan officer can model both side by side.

Key takeaways

  • FHA is more flexible; conventional is often cheaper long term.
  • Compare total cost, not just the rate.

Frequently asked questions

Related mortgage option

Ready to apply this to a real loan? Review how Conventional Loans work in Florida, or estimate your monthly payment before you talk to an advisor.

Sources

Program rules change and individual lender overlays apply. Verify specifics with the agency or with a licensed NexGen Capital advisor before relying on them.

Reviewed by NexGen Capital Corp

Written and reviewed by the licensed mortgage team at NexGen Capital Corp, a Florida mortgage brokerage (NMLS #1766649). Verify our license on NMLS Consumer Access.

Last reviewed: 2026

This article is educational and is not a commitment to lend or an offer of credit. Speak with a licensed NexGen advisor about your own situation.

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