Question 1

Is FHA or conventional cheaper in 2026?

Accepted Answer

It depends on your credit score and down payment. With 580-679 credit and less than 5% down, FHA is usually cheaper. With 680+ credit and 10%+ down, conventional is usually cheaper because PMI drops off at 78% LTV while FHA MIP lasts the life of the loan. Use this calculator to compare exact costs. Compare FHA vs conventional lenders →

Question 2

When does FHA MIP go away?

Accepted Answer

FHA MIP removal rules (2026): If you put 10%+ down, MIP removes after 11 years. If you put less than 10% down, MIP lasts the ENTIRE life of the loan (never removes). The only way to remove MIP with less than 10% down is to refinance to a conventional loan. Conventional PMI automatically removes at 78% LTV regardless of down payment. See refinance options →

Question 3

What credit score do I need for FHA vs conventional?

Accepted Answer

FHA: 580+ credit with 3.5% down, 500-579 with 10% down. Conventional: 620+ credit with 3-5% down. Best conventional rates require 740+. If your credit is 580-619, FHA is your only option. If 620-679, FHA is usually cheaper. If 680+, conventional is usually cheaper. Check which loan you qualify for →

Question 4

How much is FHA MIP vs conventional PMI?

Accepted Answer

FHA MIP (2026): 1.75% upfront (financed into loan) + 0.55% annual (paid monthly). On a $300K loan: $5,250 upfront + $137/mo. Conventional PMI: varies by credit score and down payment. 740+ credit, 5% down: ~$63/mo. 680 credit, 5% down: ~$113/mo. 620 credit, 5% down: ~$188/mo. PMI removes at 78% LTV. Compare PMI vs MIP costs →

Question 5

Can I switch from FHA to conventional later?

Accepted Answer

YES. This is called an FHA-to-conventional refinance. When your home value increases or you pay down the loan to 80% LTV, refinance to conventional to drop MIP. On a $300K home that appreciates to $350K, you reach 80% LTV and can refinance to eliminate MIP, saving $137+/month. Check refinance eligibility →

Feature	FHA Loan	Conventional
Min Credit Score	580 (3.5% down)	620 (3-5% down)
Min Down Payment	3.5%	3%
Mortgage Insurance	MIP: 1.75% upfront + 0.55% annual	PMI: varies by credit (drops at 78% LTV)
MI Removal	11 years (10%+ down) or NEVER (less than 10%)	Auto at 78% LTV
Max DTI	43% (up to 57% with AUS)	45% (up to 50% with AUS)
Loan Limits	$524,225 - $1,209,750	$832,750 (conforming)
Property Type	Primary residence only	Primary, second home, investment
Best For	Credit 580-679, low down payment	Credit 680+, 5%+ down, investment

FHA vs Conventional Loan Calculator 2026

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