How do I compare the total cost of an FHA loan versus a conventional loan?

Look past the down payment to the mortgage insurance rules, which differ sharply. FHA requires an upfront mortgage insurance premium plus an annual MIP that, on most loans with under 10% down, lasts the life of the loan — you can't cancel it, you must refinance out. Conventional PMI, by contrast, cancels automatically once you reach the equity threshold. FHA often accepts lower credit scores and higher DTI, so it may be your path if your credit is thin, but a borrower with strong credit usually pays less long term with conventional. Compare the total multi-year cost, not just the entry cost. Model both scenarios at wealthserene.com/tools/home-affordability and confirm current MIP figures at hud.gov.