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Estimates assume 30yr fixed. FHA 6.125%, Conv 5.990%. Rates vary. NMLS #65506.
FHA accepts lower credit with smaller down payment. The permanent MIP is worth it because conventional rates and PMI at this credit level are significantly more expensive.
Explore FHA loans →Both loans are competitive here. FHA offers lower down payment, but conventional PMI drops off. Run the numbers with both — Valley West shops 50+ lenders to find the best fit.
Compare your options →Conventional offers better rates, no upfront fee, and PMI drops at 20% equity. At 720+ credit, conventional almost always saves money long-term.
Explore conventional →First-time buyers often default to FHA because of the lower down payment and credit requirements. But if your credit is 700+ and you have 5%+ saved, conventional may save you thousands over the life of the loan because PMI drops off — FHA's MIP does not. Run both scenarios before deciding.
FHA charges 1.75% upfront MIP (can be financed) plus 0.55%/year for the life of the loan. Conventional PMI varies by credit and down payment (typically 0.3-1.5%/year) but automatically drops once you hit 20% equity. On a $400K home, eliminating PMI saves $100-200/month. This is the single biggest long-term cost difference between the two loans. Use our closing costs calculator to see the full picture.
Yes — refinancing from FHA to conventional is common once you have 20% equity and 620+ credit. This eliminates the permanent FHA MIP. Many buyers start with FHA to get into a home, then refinance to conventional after 2-5 years of appreciation and principal paydown.
If you're a veteran or active-duty service member, VA loans offer $0 down and no monthly mortgage insurance — beating both FHA and conventional on upfront and monthly costs. Check your VA eligibility before comparing FHA vs conventional. Use our affordability calculator and mortgage calculator to compare all three.
In the Las Vegas market (median home price ~$435K), both FHA and conventional are widely used. Clark County's lower property taxes (~0.6%) and Nevada's lack of state income tax help keep monthly costs competitive for both loan types. FHA is popular among first-time buyers in North Las Vegas and Henderson, while conventional dominates in Summerlin and higher-price neighborhoods where buyers typically have stronger credit and larger down payments. Valley West Mortgage — 8010 W Sahara Ave Suite 140 — shops both FHA and conventional across 50+ wholesale lenders.
Valley West Corporation DBA Valley West Mortgage. NMLS #65506. Equal Housing Lender. Not a government agency. All rates and terms subject to change. Not all applicants will qualify. Loan comparison estimates are for informational purposes only. Actual rates, PMI/MIP, and costs depend on individual qualifications.
