One of the most common questions from DFW buyers: ‘Should I go FHA or conventional?’ The honest answer depends on your credit score, down payment, and the home you're buying. Here's a clear breakdown.
Key TakeawayRule of Thumb: If your credit score is above 680 and you can put 5%+ down, conventional almost always costs less over time. Below 660 or under 5% down, FHA is typically smarter.
FHA Loans: Best for Lower Credit Scores and Smaller Down Payments
FHA loans are government-backed and designed to make homeownership accessible. The trade-off is mortgage insurance — you pay both an upfront premium (1.75%) and an annual premium for the life of the loan in most cases.
Conventional Loans: Best When You Have Good Credit and 5%+ Down
Conventional loans follow Fannie Mae/Freddie Mac guidelines. They have stricter credit requirements but more flexibility — no upfront mortgage insurance, and PMI automatically cancels once you reach 20% equity.
| Aspect | FHA | Conventional |
|---|---|---|
| Minimum Credit Score | 580+ | 620–680+ |
| Minimum Down Payment | 3.5% | 3–5% |
| Mortgage Insurance | 1.75% upfront + annual | PMI if <20% down |
| Insurance Removal | Life of loan (typically) | Automatic at 20% equity |
| Loan Limits (2026) | $563,500 (Dallas County) | $832,750+ (conforming) |
Have a question about your specific situation? Call or text (269) 830-0020 directly.
Talk to KeithFrequently Asked Questions
Can I remove FHA mortgage insurance?▾
If you put less than 10% down on an FHA loan after June 2013, the mortgage insurance stays for the life of the loan. The solution is to refinance into a conventional loan once you've built 20% equity. I help clients plan this transition in advance so they know exactly when to refinance.
What's the FHA loan limit in Dallas County in 2026?▾
For 2026, the FHA loan limit in the Dallas-Fort Worth area is $563,500 for a single-family home, up from $498,257 the prior year. If the home you want is above this limit, you'd need a larger down payment or conventional financing.