Is FHA cheaper than conventional PMI?
It depends on credit score and LTV. FHA tends to win at lower credit scores; conventional tends to win once credit is strong, especially with the ability to remove PMI.
What this actually means.
Conventional PMI is risk-priced — high credit, high score, and PMI costs drop sharply. FHA MIP is fixed by HUD regardless of credit. The math flips somewhere around 700–740 FICO depending on LTV.
Where this can move.
Loan term, LTV at origination, HUD's published MIP schedule at the time of origination, and refinance options can change the long-term cost.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.