Loan Comparison
FHA and conventional loans are the two most popular ways to finance a home — but they fit very different borrowers. FHA loans shine when credit is thinner or the down payment is small, while conventional loans usually win on long-term cost once you have stronger credit or 20% equity. Here’s how they stack up side by side.
| FHA Loan | Conventional Loan | |
|---|---|---|
| Minimum down payment | 3.5% (580+ credit score) | 3% for qualified first-time buyers |
| Minimum credit score | 580 (500–579 with 10% down) | 620, best pricing at 740+ |
| Mortgage insurance | Upfront premium + monthly MIP, usually for the life of the loan | PMI only under 20% down — removable at 20% equity |
| Loan limits | FHA county limits (lower in most areas) | Conforming limits (higher) |
| Property condition standards | Stricter FHA appraisal requirements | More flexible |
| Best for | First-time buyers, lower credit scores, smaller savings | Strong credit, larger down payments, lowest lifetime cost |
If your credit score is under roughly 680 or your down payment is limited, FHA often delivers the lower monthly payment. With a 700+ score and 5%+ down, conventional usually wins because PMI is cheaper and removable. CDL Mortgage prices both programs on every file, so you never have to guess.
Still Deciding?
We'll price both programs with your actual numbers and show you the payment, cash to close, and long-term cost side by side — no credit pull required.
Questions
FHA is generally easier — it accepts credit scores as low as 580 with 3.5% down and allows higher debt-to-income ratios. Conventional loans require at least a 620 score and reward stronger profiles with better pricing.
Yes, and many borrowers do exactly that. Once you build 20% equity, refinancing into a conventional loan removes FHA mortgage insurance entirely, which can save hundreds per month.
FHA base rates are often slightly lower, but FHA’s mortgage insurance usually makes the total monthly cost higher for borrowers with good credit. The true comparison is total payment — which we calculate for you on both programs.
About Us
CDL Mortgage Services Inc. is an independent, full-service mortgage company. Instead of pushing one bank’s products, we shop multiple wholesale lenders to secure the best loan at the best rate for every borrower.
Purchase, refinance, and home equity — all under one roof, focused on the best loans at the best rates.
Based at 6524 Lonetree Blvd, Rocklin, CA 95765 and licensed in California, Texas, Georgia, Tennessee, Oklahoma & Idaho.
Every file is handled start-to-finish by a licensed loan officer who knows your name and your goals.
Fully licensed and regulated, with award-winning lender partnerships and 35+ years serving borrowers.
Ready When You Are
One application, multiple wholesale lenders, and a licensed loan officer who explains the tradeoffs before you commit.