FHA or conventional is the most common fork in the road for Florida buyers, and the honest answer is: it depends on your credit score and down payment. Here is the framework.
When FHA usually wins
- Credit scores below roughly 680. FHA rates barely change with your score. Conventional pricing punishes lower scores through loan-level price adjustments.
- Small down payments with fair credit. At 3.5% down and a 640 score, FHA monthly costs usually beat conventional.
- Higher debt-to-income ratios. FHA guidelines flex up to around 50% DTI more readily than most conventional approvals.
When conventional usually wins
- Scores of 720+. You get strong pricing, and PMI is cheap for good credit.
- 10% or more down. Less insurance cost, and you skip FHA's 1.75% upfront mortgage insurance premium entirely.
- Long-term holds. Conventional PMI drops off automatically at 22% equity. FHA insurance usually sticks for the life of the loan, unless you refinance out of it later.
The crossover point
For many buyers the flip happens around a 680 to 700 credit score with 5% down. Below it, FHA tends to cost less per month. Above it, conventional pulls ahead, especially over time as PMI falls away.
Do not guess. Run both.
The only way to know is to price both against your actual credit, income, and target price. That is exactly what our free check does, with zero impact on your credit score.