First-time buyers often have more conventional-loan options than they realize. Programs supporting low down payments do exist, and comparing conventional against FHA carefully is usually more useful than defaulting to one.
Who this may fit
Prospective buyers approaching their first purchase who want to understand realistic conventional-loan paths.
Key decision factors
- Available down payment and reserves
- Credit profile and DTI
- Local property prices and county loan limits
- How long you expect to keep the loan
- PMI cost vs FHA mortgage-insurance cost
Illustrative example
Common mistakes
- Assuming FHA is always the right first-time buyer choice
- Skipping the total-cost comparison between programs
- Underestimating closing costs and reserves
Questions to ask a licensed loan officer
- Can you show a total-cost comparison of conventional and FHA for my scenario?
- Are any first-time buyer or down-payment assistance programs realistic here?
- How does the pricing change at different credit tiers I'm close to?
Sources
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- CFPB — Owning a Home / MortgagesConsumer Financial Protection Bureau · Published/effective: living resource · Last checked: 2026-07-28
Related guides and calculators
- What Is a Conventional Loan?
A plain-English explanation of conventional loans: how they work, who they may fit, and key decision factors.
- Conventional Loan Down Payment
How down payment affects PMI, monthly payment, cash to close, and long-term outcomes on a conventional loan.
- Conventional vs FHA Loan
A neutral comparison of conventional and FHA loans across down payment, mortgage insurance, credit, and long-term cost.
- Home Affordability Calculator
Estimate a purchase price range from income, debts, and a DTI cap you can edit.