FHA vs Conventional Loan: This Free Calculator Shows Which Costs Less Over 30 Years

The FHA vs conventional debate has a clear mathematical answer for every borrower — but most people guess instead of calculating. A 640 credit score with 5% down? FHA wins by $14,000+ over 30 years. A 760 score with 10% down? Conventional wins by $20,000+ because PMI drops off at 78% LTV while FHA's MIP stays for life.

FHA vs Conventional Calculator →

What Makes This Different

Most "FHA vs conventional" articles give you rules of thumb. This calculator gives you exact dollar amounts for YOUR scenario: side-by-side monthly payments, total insurance costs (FHA's 1.75% upfront MIP + 0.55% annual vs conventional PMI at 0.3–1.5% based on credit and LTV), total interest paid, and a clear winner with the savings amount.

The 2026 Numbers

FHA loan limits for 2026 stand at $498,257 in most areas and $1,149,825 in high-cost metros (HUD, April 2026). The FHA annual MIP rate remains 0.55% for 30-year loans with LTV above 95%. On the conventional side, PMI rates from major insurers (MGIC, Genworth, Radian) range 0.30–1.50% depending on credit score and LTV — and automatically cancel once your loan balance hits 78% of the original appraised value.

The FHA mortgage insurance trap: if your down payment is less than 10%, MIP stays for the life of the loan. That means a $300,000 FHA loan at 5% down pays MIP for all 30 years — roughly $49,500 in total insurance premiums versus a conventional loan where PMI drops off after year 8-10.

When FHA Wins

  • Credit score 580–659 (FHA allows 580 minimum, conventional typically needs 620+)
  • Down payment 3.5% (FHA minimum) with no PMI penalty for low scores
  • DTI up to 50% (conventional usually caps at 43-45%)

When Conventional Wins

  • Credit score 700+ (lower PMI rates than FHA MIP)
  • Down payment 10%+ (FHA MIP for 11 years vs PMI cancellation at 78% LTV)
  • Any scenario where PMI cancellation saves more long-term than FHA's lower initial rate

Related Tools

Source: HUD FHA guidelines (hud.gov), CFPB mortgage insurance guide (cfpb.gov), FHFA 2026 limits (fhfa.gov).

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Originally published at https://tool.teamzlab.com?utm_source=blogger&utm_medium=article&utm_campaign=2026-05-fha-vs-conventional-comparison-2026

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