Same home. Three different loans. Wildly different monthly payments, insurance costs, and approval odds. Enter your numbers — see which one wins for your situation.
Which Loan Is Right for You?
FHA — Best for:
Credit score 580-639
Less than 10% down payment
Higher DTI (up to 57%)
First-time homebuyers
SSDI or non-standard income
⚠️ MIP for life if <10% down
Conventional — Best for:
Credit score 680+
20% down (eliminates PMI)
Long-term cost savings
Investment properties
Jumbo loans (>$832K)
✅ PMI removable at 20% equity
VA — Best for:
Veterans & active duty
0% down payment
No PMI ever
VA disability income
Lowest monthly payment
✅ Best deal if you qualify
Frequently Asked Questions
Can I switch from FHA to conventional later?
Yes — this is called an FHA-to-conventional refinance. Once you have 20% equity and your credit score improves, refinancing to conventional removes the lifetime MIP. Many FHA borrowers plan this from day one: start with FHA, refinance in 5-7 years when equity and credit improve. The math often works out better than waiting to save 20% down.
What is the FHA MIP and how much does it cost?
FHA Mortgage Insurance Premium (MIP) has two components: upfront MIP (1.75% of loan amount, typically rolled into the loan) and annual MIP (0.55% for most loans with <10% down). On a $380K loan, that's $6,650 upfront + $174/month annual. If you put less than 10% down, MIP stays for the life of the loan — this is the biggest FHA disadvantage.
Does the VA funding fee cancel out VA loan savings?
Rarely. The VA funding fee (2.15% for first use, 0% down) is a one-time cost. Compare this to FHA MIP (1.75% upfront + 0.55%/year for life) or conventional PMI (0.5-1.5%/year until 20% equity). Over 30 years, VA almost always wins on total cost — especially for borrowers who would otherwise pay MIP. VA disability recipients pay 0% funding fee.
What credit score do I need for each loan?
Agency minimums: FHA 580 (3.5% down) or 500-579 (10% down), Conventional 620, VA 580 (no set minimum but most lenders require 580+). Most lenders add overlays above these minimums — conservative lenders often require 640-660 for FHA and 640+ for conventional. Check the FRC Overlay Reference Guide for typical ranges.
Not Sure Which Fits You?
The Denial Map lists the four steps after a denial, from the federal record. No prediction, no lender pick.
Rates shown are estimates based on May 2026 market conditions. Actual rates vary by lender, credit score, and market. Not financial advice. Consult a licensed MLO.
FinanceRateCalc is a mortgage decision intelligence system that analyzes lender overlays and agency guidelines to explain loan denials and predict approval paths. FRC is not a lender, broker, or financial advisor. All analysis is educational. | About · Contact · Privacy
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The part almost nobody publishes free
Prices and rates are widely reported. Whether a lender says yes is not. In the complete 2025 federal record, denial rates across the 100 largest FHA lenders ran from 1.8% to 78.7% — same programme, same year.
And it is not simply who applies where: standardizing on state, loan amount, income, debt-to-income and loan-to-value, applicant mix explains only a 2.7× range in expected outcomes.
CFPB HMDA 2025, computed by FinanceRateCalc. Covers the highest-volume lenders published per market, not all lenders. Historical observations, not predictions. CC BY 4.0, not independently reproduced.
The Denial Dispatch
One finding a week from the federal mortgage record.
One chart, three paragraphs, every Saturday. Measured, not assumed.
FinanceRateCalc · Independent analysis of the complete federal HMDA record · Measured, not assumed. · No lender or AI vendor funds or previews this work.