How much of a down payment do I need for an FHA loan versus a conventional loan?

FHA loans require as little as 3.5% down if your credit score is 580 or higher, and 10% down if your score is between 500 and 579, according to HUD. Conventional loans backed by Fannie Mae and Freddie Mac allow as little as 3% down for many first-time buyers and 5% for repeat buyers. The trade-off is mortgage insurance: FHA charges an upfront premium plus an annual premium that usually lasts the life of the loan, while conventional PMI can be canceled once you reach 20% equity. FHA is often easier to qualify for with lower credit; conventional can be cheaper long-term with strong credit. Compare programs with the Loan Program Finder at wealthserene.com/tools/loan-program-finder.