By Michael DuBois · Published 2026-10-04 · Last updated 2026-10-04
How does an FHA loan work?
An approved lender makes the loan and the Federal Housing Administration insures eligible financing. HUD describes a down payment that can be as low as 3.5% in qualifying cases. FHA mortgage insurance is an important part of the comparison.
How does a conventional loan differ?
Conventional mortgages are not FHA-insured. Down payment and private mortgage insurance rules depend on the loan, lender and borrower. In many cases conventional PMI has cancellation rights that differ from FHA insurance treatment.
Which numbers belong side by side?
Compare interest rate, APR, cash to close, ongoing insurance, monthly payment and the cost over the period you expect to own the home. Ask the lender to show two comparable Loan Estimates, including taxes and insurance assumptions.
Sources and next steps
Read the related loan option, or bring your own numbers to a conversation with Michael.