Even though conventional loans account for more than 80% of home loans used to purchase homes in the U.S., mortgages aren’t one size fits all. That’s where an FHA loan comes in, but what is it and is it right for you? Home Nerd Kate Wood has got you covered.
Suggested Articles:
FHA vs. Conventional Loans: https://www.nerdwallet.com/article/mortgages/fha-loan-vs-conventional-mortgage
FHA Loan: What You Need to Know:https://www.nerdwallet.com/article/mortgages/fha-loan
What Is a Conventional Loan?:https://www.nerdwallet.com/article/mortgages/conventional-mortgage
Chapters:
0:00 – Intro
0:20 – General Information On Home Loans
0:42 – Conventional Loans Explained (Lending Standards)
0:54 – FHA Loans Explained
4:31 – Types of FHA Loans
5:15 – Comparing FHA Loans To Conventional Loans
6:41 – PMI Removal Tips
7:51 – Appraisals for Conventional Loans Explained
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Versus is all about financial decisions and weighing your options. Our financially-savvy Nerds break down two similar product or services explaining why they are different and who they work well for. In the end, you will have an understanding of each option and what could work for you!
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FHA Loan vs. Conventional Loans (Mortgage): The Pros and Cons Before You Choose | NerdWallet
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35 Comments
@mrs.becomes1234 · October 15, 2026 at 12:17 pm
I had a realtor and nobody mentioned any of this to me. My score at that time was a 696-697 then.
@anannymoose · October 15, 2026 at 12:17 pm
FHA Loan:
Minimun credit score: 500 but lenders set their own standards
Allow for higher dwbt to income ratio. As high as 50%.
Minium downpayment amount will vary based off credit score.
500-579: at least 10%
580 or higher – 3.5%
High mortgage insurance as FHA is insuring these loans.
FHA Mortgage insurance is obviously based on the size of the loan.
-lasts 11 years for more than 10%
-less than 10% life of the loan
-upfront mortgage premiumim 1.75 % cost of the entire loan.
Conventional Loans:
Stritest lending standards
@ElaineMelroseOfficial · October 15, 2026 at 12:17 pm
Without sending me money, I'm willing to show a selected people how to make 20k USD in a week.
Ask Me how
@hunter8793 · October 15, 2026 at 12:17 pm
So a $500K house with a 3.5% down payment, has PMI to cover that 16.5% gap to get to 20% down. That is $82,500 worth of insurance coverage. And it costs $8,750 up front and $221.15 per month. My 87k F150 raptor insurance is $126.66 per month…
How do a start a PMI company? They are making money like crazy….
@AidanDaGreat · October 15, 2026 at 12:17 pm
Who else is watching these vids to trick the new AI?
@NOBODYKNOWBIGHAMM · October 15, 2026 at 12:17 pm
I love you, Kate ❤❤❤❤ marry me
@mattherzberg991 · October 15, 2026 at 12:17 pm
The Federal Govt wouldn't qualify for this loan. 🤣😂🥲😐🤔😬😬😬
@madebysleek · October 15, 2026 at 12:17 pm
I need help
@onleashfreak · October 15, 2026 at 12:17 pm
This is so helpful. I an in the middle if my first home buying experience and my head is spinning
@waiogletree · October 15, 2026 at 12:17 pm
This video really breaks down the pros and cons clearly; the explanation about long-term PMI with FHA is eye-opening, and definitely something to consider when deciding which loan is right for you.
@bonniej0 · October 15, 2026 at 12:17 pm
Well what if they're telling you your house is worth $300,000 when you bought it 22 years ago for 99,000 and they're charging you for insurance can't you still cancel it if you only owe 73 thousand? You're still charging me for the insurance and it's not even mine it's in my name but it's theirs because if I put a claim in it's got to be passed by them the servicer
@bonniej0 · October 15, 2026 at 12:17 pm
After a bankruptcy chapter 7, WF had me sign an agreement to stay in the house. I originally had an FHA loan. What i missed was they changed it to a conventional loan, i didnt catch it, is that legal??
@andrewnichols1240 · October 15, 2026 at 12:17 pm
Savings inloan vs banks?
@JulieBallek · October 15, 2026 at 12:17 pm
Interesting.
@KrisAnderson-BOCBank · October 15, 2026 at 12:17 pm
Great information and very well explained!
@BelindaWoodson · October 15, 2026 at 12:17 pm
Word Window
@David-x9b2n · October 15, 2026 at 12:17 pm
Oh you go homeless from rental after 40 years at yahoo?
@LincolnFelix-s4z · October 15, 2026 at 12:17 pm
Investments are the roots of financial security; the deeper they grow, the stronger your future will be."
@xstalor7720 · October 15, 2026 at 12:17 pm
Thank you so much. You did one of the best job of explaining FHA loan. So basically you don't win either way with a FHA loan, because your paying high in insurance.
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@ResurfaceFilms · October 15, 2026 at 12:17 pm
So you are stuck with private mortgage insurance with an FHA loan, even after you achieve 20% equity?
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