Is FHA or Conventional Better for First-Time Home Buyers?

Free 60-second home readiness check: a few quick questions about your situation, and our team will look it over and point you in the right direction → https://cadremortgage.com/12 Is FHA or conventional better for a first-time buyer? We run the same $350,000 house and the same buyer, with $12,250 down (3.5%), through both loans. We compare FHA's 1.75% upfront fee, the monthly mortgage insurance at 760, 700 and 640 credit scores, how long each one lasts, and the five-year total. Then why FHA's insurance now stays for the life of the loan, which goes back to a negative $16.3 billion review of FHA's insurance fund in 2012 and a rule change in 2013. We finish with when each loan wins, the math on refinancing out of FHA later, and how to check it on your own Loan Estimates. Chapters 0:00 FHA or conventional: which costs less? 0:20 Why two loans on the same house cost different amounts 1:03 The buyer and the down payment 1:44 FHA's upfront fee 2:09 Monthly insurance at 760, 700 and 640 3:36 How long it lasts, and the 2013 change 5:14 When conventional insurance comes off 6:01 The five-year total 6:54 After year five 7:20 When FHA wins 8:03 When conventional wins 8:34 Refinancing out of FHA later 9:17 Check it on your own Loan Estimates Mentioned in this video How mortgage rates actually work →    • How Are Buyers Getting Under 7% Right Now?...   Sources: Freddie Mac PMMS (week of Oct 8, 2026); Enact mortgage insurance rates via the Urban Institute, Housing Finance at a Glance, August 2026 (rates as of Aug 20, 2026); HUD Mortgagee Letters 2013-04 and 2023-05; Carol Galante's written testimony to the House Financial Services Committee, Feb 13, 2013; HUD FY2012 actuarial review of the MMI Fund; CBO on the September 2013 Treasury transfer; CFPB on removing PMI and on the Loan Estimate; Fannie Mae Selling Guide B3-6-02 and Servicing Guide B-8.1-04; HUD Handbook 4000.1; 2026 FHA loan limits. Examples are illustrative, not real clients, and not a rate quote or an offer to lend. Your mortgage insurance rate will vary. Luke Shankula, NMLS #1446932 · Mpire Financial Group, LLC, NMLS #2108504 · Equal Housing Opportunity