FHA vs. Conventional

K-02

Compare upfront cash, monthly payment, and lifetime mortgage insurance side by side.

Loan inputs

Purchase price

Loan term

15 yr20 yr30 yr

Property taxes / year

Homeowners insurance / year

HOA dues / month

Closing costs

Origination, title, and prepaid escrows as a share of the price.

Down payment

3.5% is the FHA minimum with a 580+ score. At 10% or more, MIP drops after 11 years.

Interest rate

Upfront MIP (UFMIP)

1.75% today, financed into the loan rather than paid in cash.

Annual MIP

Depends on loan amount, term, and LTV; 0.55% is typical for 30-year loans above 95% LTV.

Down payment

20% or more removes PMI entirely.

Interest rate

Annual PMI

Set 0.00 if your down payment waives PMI.

PMI cancels at

78% of the original value automatically; 80% on request.

The conventional loan costs $6N1 less a month, but the FHA loan costs $3,121N5 less over 30 years.

Plan K-02Cash to close: FHA $21,000, conventional $26,250. Estimates, not a loan offer.

FHA, per monthN1: $2,757; principal, interest, MIP, escrow
Conventional, per monthN1: $2,751; principal, interest, PMI, escrow
FHA insurance endsN3: Life of the loan; $56,546 paid in total
Conventional PMI endsN3: Month 137; $18,980 paid in total

The monthly payment, side by side

Where each loan's payment goes every month

Everything each loan costs over 30 years

From cash to close to the final payment

Line by line

Everything the two programs cost

Line item	FHA	Conventional
Down payment	$12,250 (3.5%)	$17,500 (5%)
Upfront mortgage insurance	$5,911 (financed)	None
Loan amount	$343,661	$332,500
Cash to close	$21,000	$26,250
Principal & interest	$2,116	$2,129
Mortgage insurance / month	$158	$139
Mortgage insurance ends	Life of the loan	Month 137
Mortgage insurance paid in total	$56,546	$18,980
Total interest paid	$418,091	$433,952
30-year cost of the loan	$839,456	$842,577

Estimates for education only, not a loan offer or financial advice. Program rules, MIP and PMI pricing, and rate quotes vary by lender, credit profile, and market. Confirm with a licensed loan officer before applying.