FHA vs Conventional Loans: Which Is Right for Fort Worth Buyers?
By Kimi Ortega, Loan Officer (NMLS #495946) · June 10, 2026 · 6 min read
FHA or conventional? It is the question nearly every Fort Worth buyer asks, and choosing wrong can cost you hundreds of dollars a month. Here is how to tell which one fits you, in plain English.
FHA loans at a glance
- As little as 3.5% down.
- Flexible credit guidelines, friendly to buyers still building their score.
- Requires mortgage insurance, which usually stays for the life of the loan.
Conventional loans at a glance
- As little as 3% down for qualified buyers.
- Generally wants stronger credit than FHA.
- Private mortgage insurance comes off once you reach 20% equity.
The real difference: mortgage insurance
Both loans can have mortgage insurance when you put less than 20% down. The key difference is that conventional insurance falls off as you build equity, while FHA insurance typically does not. Over several years, that gap can be worth thousands of dollars.
"People ask me for the loan with the lowest rate. The better question is which loan costs you the least over the years you actually own the home. That is usually a different answer."
Kimi OrtegaLoan Officer, NMLS #495946 · Serving Texas since 2008How to choose
FHA may be your fit if
- You are still building credit.
- You want the most flexible approval.
Conventional may be your fit if
- You have solid credit.
- You want to drop mortgage insurance down the road.
The best way to decide is to see both side by side with your real numbers. We do that comparison for every buyer. Explore our loan programs or ask us to run the numbers.
Frequently asked questions
Is FHA or conventional better for first-time buyers?
Neither is universally better. FHA is more forgiving on credit, while conventional can be cheaper long term if you have strong credit. We compare both for you.
Can I refinance from FHA to conventional later?
Yes. Many buyers start with FHA and refinance to conventional once their credit and equity improve, which can remove mortgage insurance.
Does FHA or conventional have a lower down payment?
Conventional can go as low as 3% and FHA is 3.5%, so they are very close. Your credit and budget usually matter more than that small difference.