FHA vs Conventional Loans in Washington State: Which Is Right for You?

If you're buying a home in Washington State, one of the first decisions you'll face is whether to use an FHA loan or a conventional loan. Both can get you into a home, but they differ in ways that matter to your monthly payment and long-term costs.

FHA loans are government-insured and allow down payments as low as 3.5% with credit scores starting at 580. They require both an upfront mortgage insurance premium and ongoing monthly mortgage insurance. Conventional loans are not government-insured, typically require a 620+ credit score, and allow down payments as low as 3% for qualified buyers — with the key advantage that private mortgage insurance (PMI) drops off automatically once you reach 20% equity.

For buyers with stronger credit and the ability to put 5% or more down, a conventional loan often costs less over time because PMI is cancellable. For buyers with lower credit scores or a smaller down payment, FHA can be the more accessible path. The right choice depends on your credit profile, down payment savings, and how long you plan to stay in the home.

Peter Irungu can run the numbers for your specific situation and show you a side-by-side comparison so you can choose with confidence. Reach out for a personalized review — there's no credit pull required just to talk.