FHA or conventional?
Compare what matters.
Put monthly payments and upfront costs side by side. A lower payment is one part of the decision.
Estimates only. Taxes and insurance may be higher. Get a current insurance quote and verify taxes for the property. Both scenarios use the same entered housing expenses.
| What you’re comparing | FHA | Conventional |
|---|
Cash needed is an estimate before credits or earnest money. Program eligibility and county loan limits must be confirmed separately.
Let’s compare your actual options →How these estimates work & data sources
These are fixed-rate purchase illustrations, not quotes, approvals, or Loan Estimates. Example interest rates are editable assumptions, not current advertised rates. Loan limits, credit, income, property eligibility, points, and lender terms are not evaluated.
Taxes and homeowners insurance: You supply these estimates. Property tax uses your entered annual percentage of the home price. Confirm property-specific taxes and exemptions with the county appraisal district or tax office, including possible changes after purchase. Obtain a current insurance quote and include separate flood or wind coverage if needed. Blank costs are not treated as a complete payment.
FHA: upfront mortgage insurance is 1.75% of the base loan, financed or paid in cash. The annual premium tier depends on term, down payment, and the 2026 national conforming threshold of $832,750. Estimated first-year monthly MIP uses average scheduled base-loan balances. With at least 10% down, MIP generally lasts 11 years; otherwise it lasts the loan term. Standard FHA purchase assumptions only. HUD premium schedule → · 2026 threshold →
Conventional: The first-time buyer switch allows a 3% minimum illustration when Yes is selected, and uses a 5% minimum when No is selected. It does not determine eligibility: HomeReady and other programs may offer 3% down to eligible repeat buyers. Fannie Mae 97% financing options → PMI is an editable assumption, not a credit-based quote. The schedule assumes fixed monthly PMI until the scheduled balance reaches 78% of the original value or the month after the term midpoint, whichever is earlier, with payments current. Earlier cancellation may be requested at 80% subject to conditions. It does not model lender-paid or single-premium PMI. PMI cancellation →
Cash needed adds the down payment, entered closing costs/prepaids, and any cash-paid FHA upfront premium. It does not subtract earnest money, gifts, seller credits, or lender credits. Annual schedules exclude taxes, homeowners insurance, HOA, and extra principal payments. Figures are rounded; actual billing can differ. Rules reviewed September 3, 2026. Calculations run in your browser; no location lookup is performed.