The short version
FHA loans are insured by a government agency and are built with flexible qualifying in mind. Conventional loans aren't government-insured and follow Fannie Mae and Freddie Mac guidelines.
Where FHA tends to fit
FHA is often a good fit if your credit is still developing or you want a lower down payment. It includes mortgage insurance with an upfront cost and a monthly cost.
Where conventional tends to fit
Conventional often works well when you have solid credit and a larger down payment. Mortgage insurance may apply with a smaller down payment, and it can usually be removed later.
The best way to decide
Run both side by side with your real numbers. That's what I do for every buyer, and I'll tell you honestly which comes out ahead.
General information only. Eligibility, terms, and requirements vary by lender and borrower, and not everyone will qualify. This is not a commitment to lend.