FHA and conventional mortgages can both be good options.

The right one depends on the buyer.

FHA loans can be helpful for buyers with:

• Smaller down payments
• Higher debt ratios
• Less-than-perfect credit
• Limited cash reserves

Conventional financing may make more sense for buyers with stronger credit and larger down payments.

But don’t make the decision based on the down payment alone.

Compare:

• Interest rate
• Mortgage insurance
• Cash to close
• Monthly payment
• Seller concessions
• Long-term cost

Sometimes FHA has the better payment.

Sometimes conventional wins.

The best loan is the one that fits the buyer’s complete financial picture.

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