FHA vs Conventional in Arizona | Which File Should You Run

FHA vs Conventional in Arizona

FHA is not only for damaged credit. Conventional is not always cheaper. The winner is the one that closes at the lower all-in payment after insurance and overlays.

FHA usually wins when

Credit is in the high 500s or low 600s, down payment is 3.5%, or the condo/property has FHA approval and conventional overlays are nastier. Upfront and monthly MIP are the cost.

Conventional usually wins when

Credit is stronger, you can do 3% to 5% down, and PMI is cheaper than FHA MIP or drops off sooner. Gift funds and DPA still work on many conventional programs.

Have Sal run both

Close files get priced both ways. Call (516) 250-1334. NMLS 1984347.

Ready for real numbers? Tell me about your situation and I’ll come back with actual numbers — start here. Takes two minutes. More detail in the FHA Loans in Arizona guide. Prefer to talk? Call or text (516) 250-1334, any day, any time. NMLS #1984347.