First, improve your credit score. While you don’t have to have an excellent credit ranking to qualify for an FHA loan (a minimum score of just 580 is needed to put down the low down payment requirement of 3.5 percent), you will receive a better interest rate if your score is considered good to excellent.
Conventional Loan Versus Fha Fha Loan First time buyer fha home loans are flexible and accessible. home buyers today don’t often buy homes with 20% down. Low- and no-downpayment mortgages remain popular with first-time buyers and repeat buyers alike.