Start with the question that decides it
Most first-time buyers in South Florida end up choosing between an FHA loan and a conventional loan. Both can work with a modest down payment. The difference is in how they treat your credit, how mortgage insurance works, and what kind of property you can buy.
How FHA loans work
An FHA loan is insured by the Federal Housing Administration. That insurance lets lenders accept credit histories and down payments that a conventional loan would not. In exchange, FHA loans carry mortgage insurance, both upfront and monthly.
FHA is also stricter about the property itself. The appraiser notes health and safety items, and condos have to be in an FHA-approved project.
How conventional loans work
A conventional loan is not insured by the government. With a smaller down payment you pay private mortgage insurance, but it can be removed once you build enough equity, which is the single biggest reason people choose conventional when they qualify.
Conventional loans also cover second homes and investment properties, which FHA does not.
So which one?
If your credit is still being rebuilt, FHA is often the easier approval. If your credit is strong, conventional is often cheaper over the life of the loan. The honest answer comes from running both with your real numbers, which is a fifteen-minute call.
Related: fha loans and mortgages in Coral Springs, FL.