FHA vs Conventional Loan – What's My Payment? – Is an FHA loan better than a conventional loan? It’s not exactly the age old question, but FHA vs Conventional has become more relevant since 2008; when the housing market tumbled and lenders scrambled to replace theirvs Conventional isn’t as difficult as some lenders would have you believe.
FHA mortgage rates are lower than conventional ones for applicants with "dinged" credit, and FHA loans allow credit scores down to 580. 2) Down payment: You get a lower down payment option.