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eHomeLoan – FHA Loans vs. Conventional Loans: What’s the Difference?
A Guide from eHomeLoan to Help You Choose the Right Mortgage
When you’re ready to buy a home, one of the biggest decisions you’ll face is choosing the right type of mortgage. Two of the most common options are FHA loans and conventional loans. At eHomeLoan, we’re here to simplify the process, provide guidance, and help you understand which loan fits your financial goals best.
Let’s break down the key differences between FHA and conventional loans—and how eHomeLoan’s modern mortgage platform makes applying for either one faster, easier, and smarter.
🏠 What Is an FHA Loan?
An FHA loan is backed by the Federal Housing Administration and is designed to help first-time homebuyers and those with lower credit scores or smaller down payments.
Key Features:
- Low down payment: As little as 3.5% down
- Flexible credit requirements: Accepts credit scores as low as 580
- Government-backed: Provides security for lenders, making it easier to qualify
- Mortgage insurance required: Both upfront and monthly premiums apply
Best for:
First-time buyers, those rebuilding credit, or buyers with limited savings.
🏡 What Is a Conventional Loan?
A conventional loan is not insured or guaranteed by the federal government. These loans are offered by private lenders and typically require stronger financial credentials.
Key Features:
- Minimum down payment: Typically 3–5% (sometimes higher)
- Higher credit score requirements: Generally 620 or above
- No upfront mortgage insurance: But private mortgage insurance (PMI) is required if down payment is less than 20%
- PMI can be removed: Once you reach 20% equity in your home
Best for:
Buyers with good credit, stable income, and the ability to make a larger down payment.
🔍 FHA vs. Conventional Loan Comparison
Feature | FHA Loan | Conventional Loan |
|---|---|---|
Down Payment | 3.5% minimum | 3–20% |
Credit Score Requirement | 580+ | 620+ |
Mortgage Insurance | Required (upfront + monthly) | Required if < 20% down |
Loan Limits | Varies by area (lower limits) | Higher loan limits possible |
Ideal Borrower | First-time buyers, low credit | Good credit, higher income |
💡 How eHomeLoan Helps You Choose the Right Path
At eHomeLoan, we combine technology, transparency, and expert advice to make your mortgage journey easier than ever. Whether you’re leaning toward an FHA loan for its lower barriers or a conventional loan for long-term savings, our platform helps you:
- Compare loan options instantly
- Get pre-qualified online in minutes
- Access down payment assistance programs
- Connect with licensed mortgage advisors
- Experience a seamless, paperless application process
Our goal is simple: Help you make confident decisions and get home faster.
🏁 Ready to Get Started?
Still not sure which loan is right for you? Let eHomeLoan’s smart technology and human touch guide you. Whether you’re buying your first home or your fifth, we’re here to help you make the best mortgage move. Call us at (800) E-HOME-LOAN or email us welcome@ehomeloan.com