Trying to decide between an FHA or a conventional loan for a home in Weston? You are not alone. Many buyers here weigh lower upfront costs against long-term savings, condo rules, and Florida-specific insurance. In this guide, you will learn the key differences, how each loan fits Weston’s market, what to watch for with condos, flood zones, and insurance, and the steps to choose with confidence. Let’s dive in.
FHA vs. conventional basics
What an FHA loan is
An FHA loan is insured by the Federal Housing Administration. It is popular with first-time buyers because the minimum down payment can be 3.5% if you meet FHA credit guidelines. FHA is generally more flexible on credit history and debt-to-income ratios. You will pay mortgage insurance, and the home must meet FHA property standards.
What a conventional loan is
A conventional loan follows Fannie Mae or Freddie Mac rules or private conventional guidelines. Some programs allow as little as 3% down for eligible first-time buyers. Stronger credit and larger down payments usually earn better pricing. Private mortgage insurance (PMI) can be cancelled once you reach certain equity levels, which can lower long-term costs.
Quick comparison for Weston buyers
- FHA can offer lower upfront cash and more flexible credit.
- Conventional often costs less over time if your credit and down payment are strong, since PMI can be removed.
- FHA has specific property standards and special rules for condos.
- Your intended price point matters because FHA loans have county limits.
Down payment, credit, and DTI
FHA minimums
If you qualify under FHA credit rules, you can put 3.5% down. FHA can allow lower credit scores with a larger down payment, but many lenders add their own requirements. FHA underwriting can also permit higher debt-to-income ratios with compensating factors.
Conventional minimums
Conventional loans may allow 3% down in certain programs, but very competitive interest rates usually favor larger down payments and solid credit. A 620 credit score is a common minimum in conventional underwriting, and many lenders prefer higher.
Seller concessions
FHA lets the seller pay up to 6% of the sales price toward your closing costs and prepaid items. Conventional loans allow different seller-paid caps that depend on your down payment. For example, conventional limits are often 3% with less than 10% down, and can increase at higher down payments.
Mortgage insurance costs and timing
FHA mortgage insurance (MIP)
FHA has two parts to its mortgage insurance. You pay an upfront mortgage insurance premium, commonly 1.75% of the base loan amount, which can be financed. You also pay an annual MIP as part of your monthly payment. If your initial loan-to-value is 90% or less, MIP lasts 11 years. If it is above 90%, MIP lasts for the life of the loan. Many buyers refinance to a conventional loan later if equity and credit improve.
Conventional mortgage insurance (PMI)
Conventional PMI is usually a monthly cost that depends on your credit score and down payment. You can request PMI removal when you reach 80% loan-to-value based on the original amortization schedule, and many loans automatically terminate PMI at 78%. This ability to remove PMI is a major driver of long-term savings for conventional borrowers.
What this means for your budget
- If you need a smaller upfront cash outlay and more flexible credit, FHA can help you get in the door.
- If you plan to stay long term and can qualify, conventional can be more cost effective since PMI can be cancelled and is often lower for strong credit.
- A common approach in Weston is to start with FHA for flexibility, then refinance to conventional once you have enough equity and meet credit targets.
Loan limits and Weston price points
Why limits matter in Broward County
Home prices in Weston are often above national averages. Whether FHA is viable depends on the FHA county loan limit for Broward County. If your purchase price pushes the loan amount above that limit, FHA will not cover the excess. You would need a larger down payment to fit within the limit or choose a conventional or jumbo loan.
How to check your limit
Two numbers guide your options:
- The FHA county loan limit published by HUD for Broward County.
- The conforming loan limit published by the Federal Housing Finance Agency for conventional loans. Confirm both before you shop, since these change annually and can affect your budget and program choice.
If your price exceeds the limit
If the home you want is above the FHA limit, you can:
- Increase your down payment to bring the FHA loan amount under the cap.
- Use a conventional conforming loan if within the conforming limit.
- Use a jumbo loan if you exceed conforming limits, which has different underwriting and pricing.
Property type and condition
Appraisals and repairs
FHA requires the home to meet minimum property standards related to safety, security, and soundness. Some items must be repaired before closing if flagged in the appraisal. Conventional appraisals also look for habitability but are generally more flexible on cosmetic issues. Many Weston homes are newer construction, which often align with these standards, but you should still plan for potential lender-required repairs.
Condos and HOA approval
If you are buying a condo, FHA lending depends on whether the project is FHA approved or qualifies for a single-unit approval. Many Weston communities include townhomes and condos, so verify project approval early to avoid delays. Conventional loans have their own condo eligibility standards, which your lender will review.
Townhomes and single-family homes
Townhomes and single-family homes typically present fewer project-approval hurdles than condos. Still, both FHA and conventional lenders will review HOA rules, property condition, and insurance.
Florida and Weston-specific costs
Flood zones and flood insurance
Parts of Broward County, including areas in and around Weston, are in FEMA-designated flood zones. If a property is in a Special Flood Hazard Area, lenders will require flood insurance. This can be a meaningful monthly cost in Florida, so check flood maps early and request a flood insurance quote before you finalize your offer.
Homeowners insurance and wind mitigation
Florida homeowners insurance often costs more due to hurricane risk. Lenders require adequate hazard and wind coverage. Features like impact windows and roof-to-wall connections can reduce premiums, so ask for a wind mitigation inspection when you shop for insurance.
Property taxes, escrow, and HOA
Your monthly payment includes principal, interest, and usually escrows for property taxes and insurance. In Broward County, property taxes and HOA dues can significantly affect your monthly budget. Use the county property appraiser’s site for tax estimates on a specific address and ask your lender how escrows will be handled.
Which loan might fit your situation
When FHA may make sense
- You have limited savings and can put 3.5% down.
- Your credit history needs flexibility, or you have higher debt-to-income ratios.
- You plan to own short-to-medium term and may refinance later.
- You are pairing your loan with a down payment assistance program that aligns with FHA.
When conventional may make sense
- You have good to excellent credit and at least a moderate down payment.
- You want to remove PMI later or avoid it with 20% down.
- You are buying at a price that exceeds FHA limits.
- You plan to stay long term and want the lowest potential lifetime cost.
Time horizon and refinance strategy
If you expect to move or refinance within a few years, FHA’s lower upfront cash requirement can help you close sooner. If you plan to stay longer, conventional’s PMI removal and pricing can be compelling. Many Weston buyers start with FHA to enter the market, then refinance to conventional once their equity, income, and credit improve.
Your step-by-step checklist
- Verify the current FHA loan limit for Broward County and the conforming loan limit for conventional loans.
- Pull your credit and get prequalified with both an FHA-friendly lender and a conventional lender.
- Ask for detailed Loan Estimates that show interest rate, APR, lender fees, mortgage insurance, and total cash to close.
- Estimate monthly costs for both options, including MIP vs. PMI, property taxes, homeowners insurance, and any flood insurance.
- Confirm property type: single-family, townhome, or condo. If a condo, check FHA project approval status early.
- Review the appraisal and repair expectations for each loan type before you write an offer.
- Check FEMA flood maps and request a flood insurance quote if the property is in a mapped flood zone.
- Clarify seller concessions limits and whether your lender allows seller-paid repairs or repair escrows.
- Confirm the expected closing timeline and whether condo or third-party approvals could affect the schedule.
How The Santana Group helps
You deserve clear guidance tailored to Weston. Our team pairs deep local knowledge with a consultative approach so you can compare FHA and conventional with confidence. We help you align your price point with current loan limits, flag condo approval considerations early, and evaluate flood and insurance impacts that affect your monthly costs.
We regularly coordinate with experienced lenders in Broward County who handle FHA, conventional, and condo approvals. You will see side-by-side scenarios for MIP vs. PMI, seller concession strategies, and cash-to-close so you can make the best decision for your family.
Ready to talk through your options or start a tailored search in Weston? Connect with The Santana Group for local guidance from a team that blends financial know-how with white-glove service.
FAQs
Which loan is cheaper month-to-month in Weston?
- It depends on your credit, down payment, and price point; FHA can lower upfront cash and may have higher monthly insurance, while conventional can be cheaper long term if you qualify for lower PMI and can remove it at 80% loan-to-value.
How much will I pay for FHA mortgage insurance?
- FHA typically charges an upfront premium of about 1.75% of the base loan and an annual MIP paid monthly; if your initial loan-to-value is above 90%, MIP lasts for the life of the loan, and if 90% or less, it lasts 11 years.
Can I use FHA for a condo in Weston?
- Possibly, but the condo project usually must be FHA approved or eligible for single-unit approval; verify the project’s status early because it can affect your loan choice and timeline.
What happens if the Weston home is in a flood zone?
- Lenders require flood insurance for homes in FEMA Special Flood Hazard Areas, so get a flood determination and insurance quote early because premiums can impact your monthly payment.
How can I avoid or remove mortgage insurance on a conventional loan?
- Put 20% down to avoid PMI, or put less down and plan to request cancellation at 80% loan-to-value; many loans automatically end PMI at 78% under federal rules.
What if my credit is below 620?
- FHA may be more attainable since it is more flexible on credit and down payment, though lender overlays and waiting periods still apply; some buyers start with FHA then refinance to conventional after improving credit.
What are my options if the price exceeds the FHA limit?
- Increase your down payment to fit within the FHA cap, choose a conventional conforming loan if possible, or use a jumbo loan if the price exceeds conforming limits; your lender will outline the tradeoffs in pricing and documentation.
