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FHA vs Conventional Loan in Florida: Which Is Right for You?

A side-by-side breakdown of FHA and conventional loans for Florida buyers — down payments, credit, mortgage insurance, and how to choose.

January 15, 2025 7 min readBy My Mortgage Loan

The Quick Answer

For most first-time Florida buyers with lower credit or limited savings, an FHA loan offers the easiest path to homeownership with just 3.5% down. Buyers with strong credit and 5%–20% to put down often save more over time with a conventional loan because they can cancel mortgage insurance.

The right choice comes down to your credit score, down payment, and how long you plan to stay in the home.

Down Payment & Credit

FHA loans accept credit scores from 580 with 3.5% down, making them ideal for buyers still building credit. Conventional loans start around a 620 score and reward higher scores with better pricing — the best rates usually go to buyers at 740 and above.

Conventional loans can also go as low as 3% down for qualified first-time buyers, which surprises many people who assume they need 20%.

Mortgage Insurance Matters

This is the biggest long-term difference. FHA loans carry mortgage insurance for the life of most loans, while conventional PMI can be cancelled once you reach 20% equity. Over a 30-year loan, that difference can add up to thousands of dollars.

If you plan to stay in your Florida home for many years and can reach 20% equity, conventional financing often wins on total cost.

Which Should You Choose?

There is no one-size-fits-all answer. We compare both side by side using your real numbers so you can see the monthly payment and lifetime cost of each. Call 813-906-5886 and we will run the comparison for free.

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