What's the difference between an FHA and conventional loan?
It's easier to qualify for an FHA loan than for a conventional loan, which is a mortgage that isn't insured or guaranteed by the federal government. FHA loans allow for lower credit scores than conventional loans and, in some cases, lower monthly mortgage insurance payments. FHA rules are more liberal regarding gifts of down payment money from family, employers or charitable organizations. FHA loans may involve closing costs that aren't required by conventional loans.