what is the difference between fha and conventional loans

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     · Comparison: VA Loans Versus Conventional Mortgages By Liz Clinger Updated on 6/9/2017. While you may qualify for both loans, generally there is one option will benefit you more than the other. The main differences between VA loans and conventional loans are the eligibility qualifications, mortgage insurance, and down payment.

    Down Payments. FHA loans require a lower down payment, typically between 3.5 percent and 10 percent of the credit score determines whether you’re program-eligible; and, it.

    In the end, choosing between an FHA and conventional loan depends on your priorities and situation. If you are interested mainly in keeping a lid on your long-term mortgage costs, and you have good credit, a conventional mortgage is probably your best bet, said Fleming.