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.

The FHA vs. Conventional debate is one of the most common questions Florida buyers bring to us. The answer depends almost entirely on your credit score, your down payment amount, and how long you plan to stay in the home. There is no universal winner — only the right choice for your specific situation.

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

On a $400,000 home with 5% down in 2026: an FHA loan at 6.625% costs approximately $2,537/month (principal, interest, and MIP). A Conventional loan at 6.750% with PMI costs approximately $2,589/month. FHA wins on the monthly payment — but that advantage comes with a long-term cost that flips the comparison over time.

The MIP vs. PMI Long-Term Cost Comparison

FHA requires mortgage insurance premiums (MIP) for the life of the loan if you put less than 10% down. Conventional PMI, by contrast, cancels automatically when your equity reaches 80% LTV — roughly year 8–9 on a 30-year loan. Over 10 years, Conventional saves an estimated $12,400 in eliminated PMI versus FHA's permanent MIP on a $400K purchase.

When FHA Wins — and When Conventional Wins in Florida

If your score is 740+ and you're putting 5–10% down with plans to stay 5+ years, Conventional typically wins — you pay a slightly higher rate upfront but eliminate PMI before your total cost exceeds FHA's. If your score is 620–680, or you're putting down exactly 3.5%, FHA is almost always the better call. The lower rate more than compensates for permanent MIP in the near term.

Our Recommendation for Florida Borrowers

We run this FHA vs. Conventional analysis for every Florida borrower before recommending a loan type. The difference can be tens of thousands of dollars over the life of the loan. See today's Florida mortgage rates or use our mortgage calculator to model your specific scenario — or apply now and we'll run the full comparison at no cost.