The two most common mortgage types — compared across every factor that actually affects your decision.
At a glance
The most decision-relevant factors — side by side.
Situation matters
Neither loan is universally better. The right one depends on your specific combination of score, down payment, and timeline.
FHA is accessible at 580; most conventional lenders effectively require 660+. At 600, FHA is often the only realistic path.
Expect rates 0.5–1.0% higher and possible denial at sub-660 scores with conventional lenders.
MIP stays for the life of the loan if you put less than 10% down — the only exit is refinancing.
PMI drops at 20% equity and rate is usually lower with a strong score. Long-term cost is meaningfully cheaper.
Ohio's OHFA Your Choice! program is FHA-compatible and can cover the entire 3.5% down payment. Far fewer DPA programs work with conventional.
Conventional-compatible DPA programs exist but are fewer, with tighter income limits and smaller assistance amounts.
$524,225 FHA limit is a hard stop in most Ohio counties — above it, FHA simply doesn't apply.
Conventional's $806,500 conforming limit covers most Ohio transactions above FHA's ceiling. Jumbo starts above that.
FHA allows eligibility as soon as 2 years post-bankruptcy Chapter 7. Conventional typically requires 4 years. FHA is more forgiving of isolated derogatories.
Waiting periods for negative credit events are longer; underwriting is less forgiving on recent issues.
At this score and price, run both numbers. FHA rate may be lower; PMI on conventional may be cheaper than MIP. Model it with the calculator below.
Conventional PMI at 660 is often comparable to FHA MIP — but PMI drops at 20% equity. Over 10 years, conventional may save $8K–$12K.
Complete picture
Every meaningful difference between the two loan types, in one place.
| Factor | FHA | Conventional |
|---|---|---|
| Min. down payment | 3.5%500–579 score: 10% | 3%–5%HomeReady/HomePossible at 3% |
| Credit score floor | 500 (FHA) / 580 (most lenders)More flexible | 620 min / 660 practicalSome lenders overlay at 680+ |
| Mortgage insurance removal | Never (if <10% down)Only exit is refinancing | Drops at 20% equityLong-term winner |
| Upfront insurance cost | 1.75% UFMIPAdded to loan balance | NoneNo upfront cost |
| Monthly MI rate (approx.) | 0.55% / yrVaries by LTV and term | 0.20–1.50% / yrVaries significantly by score |
| Max loan (Ohio 2025) | $524,225Most counties | $806,500Higher ceiling |
| Interest rate (typical) | Often lower rateRate advantage | Higher rate at low scoresBetter rate at 740+ score |
| DTI limit | 43% standard / 50% w/ compensating factors | 45% standard / up to 50% via DU |
| Property condition | FHA Minimum Property StandardsStricter inspection requirements | Standard appraisal onlyFixer-upper friendly |
| Co-borrower without residency | AllowedMore flexible | Non-occupant co-borrower allowed on most programs |
| Seller concessions | Up to 6% of sale priceHigher allowance | Up to 3% (<10% down) / 6% (10%+ down) |
| Closing time (Ohio) | 38–52 days | 28–40 daysFaster close |
Find your path
These profiles cover the most common borrower situations we see in Ohio.
Run your numbers
Enter your scenario once — see FHA and conventional side by side, including mortgage insurance.
Ohio median: $228,400
MIP for life of loan (< 10% down). Exit by refinancing at 20% equity.
PMI cancels automatically at ~20% equity.
Estimates only. Rates are approximate based on score tier — actual rates vary by lender, lock date, and full file review. Does not include taxes, insurance, or HOA.
Real questions
What borrowers get wrong
"The borrowers who regret their choice almost always made it based on one number — usually the monthly payment — without looking at total cost over their actual expected stay. That one calculation changes the answer more often than any other factor."
Keshabi Acharya
Senior Loan Officer, Intra Mortgage — Licensed OH, IN, PA, TXThe three mistakes he sees most:
Choosing FHA to save $30/month on the payment — while paying $8,000 more in MIP over the life of the loan because they never refinanced.
Assuming conventional is "better" with a 661 score — and paying 0.85% more in rate than the FHA equivalent for the same loan.
Picking conventional to "look better" to the seller — without realizing the seller's agent can't see your loan type until the pre-approval letter.
No cost, no obligation — a straight answer on which loan actually saves you more given your score, budget, and how long you plan to stay.