Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

FHA Loan vs Conventional Loan – which one is better? I was speaking at an FHA seminar for real estate agents in Fremont, CA recently. The topic was “How FHA loans are playing a big part in qualifying more First Time Home Buyers”. At the end of the presentation, I was asked this question – “Are FHA loans really better than conventional”. I had similar questions asked by Buyers and Real Estate agents in other forums in San Jose and rest of the San Francisco Bay Area too.

There is no black & white answer to it – because it all depends on your situation. Below, I have compiled a table to compare the loan features of both the programs. As you would see depending on your specific situation, either one could be better.

** Since I wrote this post FHA Up front Mortgage Insurance Premium (UFMIP) requirements have changed**




Max Loan Amount










Up to 1.05%

Up to 1.50%


Only for LTVs>80%

At all LTVs



via HVCC

Non occupant co-borrower

Not Allowed


Declining Market Policy



Higher Rates for Condos

Yes, >75% LTV

Same as SFR

Min credit score at max LTV

680/700/720 (Based on the loan amount)

620/640 (Based on the lender)


All Types

Only Primary Residence

All funds can be gifted




Optional <90% LTV

Always mandatory

Manufactured Housing

Limited Options


Pre-Payment Penalty



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