FHA vs Conventional Calculator

FHA and conventional aren't 'good credit' versus 'bad credit'. They're two different pricing structures, and which one wins depends on your credit score, your down payment, and how long you'll keep the loan.

The biggest difference is mortgage insurance: conventional MI cancels as you build equity, while FHA's typically lasts the life of the loan when you put down less than 10%.

Your numbers

$325,000

Driven mostly by credit score and down payment.

Your results

FHA costs less

$3,357

Over 7 years, including down payment

Conventional monthly (P&I + MI)
$2,093
FHA monthly (P&I + MIP)
$2,111
Conventional down payment
$16,250
FHA down payment
$11,375
FHA financed upfront MIP
$5,488

1.75% added to the loan

Conventional MI
$142/mo

Cancels near 20% equity

FHA MIP
$146/mo

Typically for the life of the loan under 10% down

ConventionalFHA
Down payment$16,250$11,375
Loan amount$308,750$319,113
Monthly P&I$1,952$1,965
Monthly MI$142$146
7-year total$192,064$188,707

What happens if you change this

Over 7 years, FHA costs $3,357 less. FHA asks for $4,875 less up front, but adds $5,488 of financed upfront MIP and keeps mortgage insurance in place. Conventional MI of $142 a month cancels as you approach 20% equity — the longer you hold the loan, the more that matters.

Ready for real numbers?

Estimates get you oriented. A pre-approval gets you an offer sellers take seriously.

Related calculators

Keep learning

Questions people ask

Is FHA only for first-time buyers?
No. FHA is available to repeat buyers too, as long as it's your primary residence and you meet the guidelines.
Which is better with a 640 credit score?
Often FHA at that score, because conventional mortgage insurance prices sharply off credit. Run it both ways — the crossover point moves with the rate spread.

Estimates for education only — not a loan approval, rate quote, or commitment to lend. Actual figures depend on credit, property, program guidelines, and market conditions at the time of lock. Corie Adams · NMLS #1875205 · Network Funding, LP · NMLS ID #2279 · Equal Housing Opportunity.