What are todays FHA loan rates?

As of March 2026, FHA 30-year fixed rates start at 5.750% and FHA 15-year fixed rates start at 5.500%.

Are FHA rates lower than conventional?

Yes. FHA rates are typically 0.25-0.50% lower than conventional rates due to the FHA guaranty reducing lender risk.

QUICK ANSWER — FHA requires 3.5% down with 580 credit and charges lifetime mortgage insurance. Conventional requires 5-20% down with 620 credit but PMI drops at 20% equity. Choose FHA if credit is under 700 or you have limited savings. Choose conventional if credit is 720+ with 10%+ down.

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FHA vs Conventional: Which Is Better?

Side-by-side on 8 key factors. FHA wins for lower credit and small down payments. Conventional wins for 720+ credit with 10%+ down.

Check What You Qualify For → (702) 696-9900

COMPARISON

Head-to-Head Comparison

FHA

Conventional

Min. Down Payment

3.5%

Min. Credit Score

580

620

Mortgage Insurance

Life of loan

Until 20% equity

30-Year Rate

5.750%

5.990%

Max DTI

57%

50%

Gift Funds

100%

100%*

Seller Concessions

Up to 6%

3-9%

Best For

Lower credit

Higher credit

FAQ

Questions? Answered.

FHA is typically better for first-time buyers with credit under 700 or limited savings. The 3.5% down and flexible credit make qualification easier. Conventional wins if you have 720+ credit and 10%+ down because PMI drops at 20% equity.

It depends on credit and down payment. FHA has lower rates but permanent mortgage insurance. Conventional has slightly higher rates but PMI drops at 20% equity. The crossover is roughly a 700 credit score with 10% down.

Yes. Refinance from FHA to conventional once you have 20% equity and 620+ credit. This eliminates FHA mortgage insurance and can save $200-400/month on a typical Las Vegas home.

Similar at 2-5% of loan amount. FHA adds 1.75% upfront MIP but allows 6% seller concessions. Conventional limits seller concessions to 3-9% depending on down payment.

Yes. As an independent broker, Valley West shops 50+ lenders for both FHA and conventional loans. We compare both options for every borrower and recommend whichever saves you more money.