FHA vs. Conventional in Florida: Which Loan Wins in 2026?

Educational content only. This article is for informational purposes and does not constitute financial, legal, or lending advice. Loan programs, rates, and eligibility requirements change frequently. Consult a licensed mortgage professional before making any borrowing decision. Mortgage Capital | NMLS# 1859012 | Licensed in Florida.

FHA vs. Conventional is probably the question Florida buyers ask us most. The honest answer: it depends. Your credit score, how much you put down, and how long you plan to stay all change the math. There is no single winner here, just the loan that fits your situation.

Monthly Cost: FHA vs. Conventional on a $400K Florida Home

Take a $400,000 home with 5% down at 2026 pricing. An FHA loan at 6.625% runs about $2,537 a month once you fold in principal, interest, and MIP. A conventional loan at 6.750% with PMI comes in around $2,589. FHA wins on the monthly payment today. The catch is a long-term cost that flips the comparison the longer you stay.

The MIP vs. PMI Long-Term Cost Comparison

Here is where it turns. With less than 10% down, FHA keeps its mortgage insurance (MIP) for the life of the loan. Conventional PMI drops off on its own once you hit 80% LTV, usually around year eight or nine on a 30-year note. Over a decade, that canceled PMI saves roughly $12,400 on a $400K purchase compared to FHA's permanent MIP.

When FHA Wins — and When Conventional Wins in Florida

Score at 740 or higher, putting down 5 to 10%, and planning to stay five or more years? Conventional usually wins. You eat a slightly higher rate at first but shed PMI before your total cost passes FHA's. If your score sits in the 620 to 680 range, or you are putting down exactly 3.5%, FHA is almost always the better call. The lower rate more than makes up for permanent MIP in the years that matter most.

Our Recommendation for Florida Borrowers

We run this FHA vs. Conventional comparison for every Florida borrower before we suggest a loan type. The gap can run into tens of thousands of dollars over the life of the loan. Check today's Florida mortgage rates or run your own numbers in our mortgage calculator. Or just apply and we will do the full comparison for you at no cost.