Should I get an FHA loan or a conventional loan with 3% down?

Описание: Whether FHA or conventional is better depends entirely on your credit score — and the numbers might surprise you.
For buyers putting down the minimum in Texas, FHA requires 3.5% down with a minimum 580 credit score, while conventional requires 3% down but a minimum 620. The real difference shows up in mortgage insurance. On a $400,000 loan, FHA mortgage insurance runs about $176 a month regardless of credit score, while conventional mortgage insurance at a 620 credit score runs roughly $608 a month — more than $430 more. The crossover point where conventional becomes cheaper on mortgage insurance is around a 780 credit score, where conventional drops to approximately $116 a month. FHA also allows a higher debt-to-income ratio of 55% versus conventional's 50%, meaning FHA buyers can qualify for more home on the same income.

What you'll learn: The exact mortgage insurance cost by credit score for both FHA and conventional on a $400,000 loan
What you'll learn: Why a 620 credit score almost always points toward FHA — even if conventional technically allows it
What you'll learn: How seller contribution limits differ between FHA and conventional and what happens if you ask for too much
What you'll learn: At what credit score conventional mortgage insurance becomes cheaper than FHA
What you'll learn: Why FHA is not a permanent decision — and how to refinance out of it when the time is right

0:00 FHA vs Conventional — Which Is Right for You
0:22 Minimum Down Payment Comparison
0:41 Credit Score Requirements Side by Side
1:05 FHA Upfront Fee vs Conventional
1:31 How Mortgage Insurance Works on Each Loan
2:01 FHA Mortgage Insurance Breakdown
2:24 Conventional MI by Credit Score
2:49 Interest Rate Comparison by Credit Score
3:54 Debt-to-Income Ratio Limits Compared
5:12 Seller Contribution Limits Explained
5:35 How To Compare Both Loan Estimates
6:24 Refinancing From FHA to Conventional Later
6:44 Which Loan Is Actually Best for You

Is FHA or conventional better for a first-time buyer with a 620 credit score?
How much is FHA mortgage insurance on a $400,000 loan?
At what credit score does conventional mortgage insurance beat FHA?
Can I qualify for a conventional loan with a 620 credit score in Texas?
What is the seller contribution limit on an FHA loan in 2026?
How do I refinance out of an FHA loan into conventional later?

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David Krichmar
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Mortgage Banker NMLS 293883
Dave Your Mortgage Guy by Legend Lending Corporation LLC NMLS 229421
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Legend Lending Corporation, NMLS #229421. Loan Originator: David Krichmar NMLS # 293883. Equal Housing Lender. All loans subject to credit and property approval. This is not a commitment to lend. Programs, rates, and terms may change without notice. Consumers may file complaints with the Texas Department of Savings and Mortgage Lending at www.sml.texas.gov or by calling (877) 276-5550.