FHA gets you in the door easier, but conventional saves you more over time. Here is the math on a $435,000 Las Vegas home.
FHA at 3.5% down with 580+ credit gets a lower rate initially. Monthly payment is $2,491 including MIP. Conventional at 5% down is $2,674 including PMI. FHA saves $183/month early on.
Conventional PMI drops at 20% equity (~year 7). FHA MIP stays forever. Once PMI drops, conventional payment falls to $2,491 while FHA stays at $2,491 with permanent MIP.
Over 30 years, conventional borrowers save $38,000+ vs FHA. The smart play for FHA buyers: buy with FHA, build equity, refinance to conventional at 20%. Valley West handles both. Full comparison →
