What credit score do I need for an FHA loan versus a conventional loan?

FHA loans can work with scores around 580, while conventional loans usually need 620 or higher. The best pricing on either loan goes to higher scores, so a few points can matter.

Does FHA mortgage insurance ever go away?

On many FHA loans it lasts for the life of the loan. Conventional PMI can be removed once you build enough equity, which is one reason buyers with strong credit often choose conventional.

Can I use Utah down payment assistance with both?

Often, yes. Many Utah programs work with FHA and conventional loans, but each program has its own rules, and Utah Housing's products are tied to specific loan types. We check which combinations fit your purchase.

Can I use an FHA loan on a fixer-upper or a condo?

FHA appraisals check property condition more closely, and condos need to be on FHA's approved list or meet single-unit approval. Conventional loans can be more flexible on both.

FHA vs. Conventional Loans in Utah: Which Fits a First-Time Buyer?

For most Utah first-time buyers, the choice comes down to two loans: FHA and conventional. Both can work with a small down payment. They differ in who qualifies easily, what mortgage insurance costs, and what kinds of homes they'll finance.

Here's how to tell which one fits you.

The short version

	FHA	Conventional
Typical minimum credit score	Around 580	Usually 620+
Mortgage insurance	Upfront premium plus a monthly premium, often for the life of the loan	Monthly PMI that can be removed as you build equity
Debt-to-income flexibility	More flexible	Stricter, especially with lower scores
Credit history after a setback	Shorter waiting periods after bankruptcy or foreclosure	Longer waiting periods
Property types	Primary home only; stricter condition rules	Primary, second home, or investment property
Condos	Must meet FHA approval rules	Often easier

When FHA usually wins

Your credit score is under about 680. FHA pricing doesn't drop as sharply for lower scores, and FHA accepts scores conventional loans won't.

Your debt-to-income ratio is on the high side. FHA tends to allow more room, which matters with student loans or car payments.

You've had a credit setback. FHA's waiting periods after a bankruptcy or foreclosure are generally shorter than conventional's.

You're pairing it with certain Utah programs. Some Utah Housing Corporation products are built around FHA loans. Our guide to UHC FirstHome vs. the Score loan explains how those work.

When conventional usually wins

Your credit is strong. With a score in the 700s, conventional PMI is often cheaper than FHA's mortgage insurance, and it doesn't last forever.

You want mortgage insurance to go away. Conventional PMI can be removed once you reach enough equity, through payments or a rise in your home's value. Our guide on PMI in Utah covers how.

You're buying a condo or a home that needs work. FHA's appraisal looks hard at peeling paint, roofs, and safety items, and condos need FHA approval. Conventional can be simpler.

Mortgage insurance is the real difference

At the same interest rate, the two loans can have very different total costs because of mortgage insurance:

FHA charges an upfront premium (1.75% of the loan, usually rolled into the loan) plus a monthly premium. On many FHA loans, the monthly premium stays until you refinance or sell.
Conventional PMI is priced on your credit and equity. It can be higher than FHA's for low scores and much lower for high scores, and it comes off as your equity grows.

That's why we price both for most first-time buyers. The cheaper loan often isn't the one people assume.

Don't forget down payment assistance

In Utah, the loan you choose can change which down payment assistance programs you can use. Some programs work with either loan type; others have rules about the first mortgage. Get the program question answered before you settle on a loan type.

Let us price both

We'll run FHA and conventional side by side on your actual credit, income, and price range, and show you the payment, mortgage insurance, and cash to close for each. Book a free call to get started.