FHA Loans and Conventional Loans—Which Is Better for You

If you’re interested in purchasing real estate property, one way to make your dreams come true of acquiring a place of your own includes looking into reliable first-time homebuyer programs. Part of it is choosing from various loans and acquiring one that can suit your financial needs.

Most of the time, relying on your savings isn’t enough to sustain your home-buying decisions, especially since you have other priorities to address. This is where an FHA loan, a government-supported program, or a conventional loan comes into the picture.

Keep reading below to determine which loan is right for you.

What Are Conventional Loans?

Conventional loans are financial programs that consist of applying for traditional or commercial loans in exchange for successfully paying for your chosen home for sale. As a potential buyer, you must know that a conventional loan is often the best option for home loans if you don’t have any connections with the government.

Unlike FHA or VA loans—which are backed by the government—a conventional loan is funded by banks, money lenders, and mortgage brokerages. You can also look forward to receiving a traditional loan from a credit union or online lender; it all comes down to which option is the most convenient for you!

Who Can Get a Conventional Loan?

Homebuyers who can provide a considerable amount of down payment for the property they wish to buy could rely on a conventional loan. Take note that the minimum DP is 3% of your savings, although some mortgage lenders may need 20% or even more.

You could also think about getting a conventional loan if you have outstanding credit to assure the company or lender you’re borrowing money from that you can repay the loan on time. 

Compared to government-backed loans, conventional mortgages require fewer documents and steps to attain. The interest rates you receive will ultimately depend on your situation, such as having a good credit rating and appropriate income, and if you seek help from a reliable mortgage company. 

What Are FHA Loans?

Another loan program you can think about applying for is an FHA loan. It’s a kind of loan that consists of flexible benefits, giving homebuyers a chance to purchase a house despite not having enough funds coming from their savings.

An FHA loan also gives you greater possibilities of being approved despite having a poor credit rating, lessening the financial burden off of your shoulders.


In the end, picking the right housing loan between a conventional loan or an FHA loan will be based on your credit score, current savings, and the stability of your income. The demand for real estate in Massachusetts remains high, which means you can’t expect the prices of the properties to be going down soon. However, you can see yourself owning a property when you learn to depend on home buying programs that offer excellent solutions for you and your family.

Are you looking for home loans in Massachusetts? ACB Mortgage Solutions is a brokerage firm helping residential and business investor clients obtain a property through conventional loans, government-backed loans, investment opportunities, and more. Get in touch with us today to schedule an appointment!