When comparing conventional loan vs FHA down payment requirements, use this checklist: Conventional loans generally require a higher down payment, often starting at 5%, but may go up to 20% or more. FHA loans typically allow a down payment as low as 3.5%, making them appealing for borrowers with limited savings. Additionally, FHA loans require mortgage insurance regardless of down payment size, while conventional loans may waive this with a 20% down payment.
Understanding these key differences helps in choosing the right loan type for your financial situation and homeownership goals.
