FHA vs Conventional Loan - Which Is Better for Rochester NY Buyers?
Side-by-side comparison using a $250,000 Rochester home. Find out which loan type saves you more based on your credit score and down payment.
Quick Answer
Credit score below 680
Choose FHA - easier qualification and lower rate despite the MIP.
Credit 680+ with 5-15% down
Compare both - conventional often wins if PMI drops off faster.
20%+ down payment
Always use conventional - no PMI, lowest total cost.
Requirements Comparison
| Requirement | FHA Loan | Conventional Loan |
|---|---|---|
| Minimum Credit Score | 580 (3.5% down) / 500 (10% down) | 620 minimum / 740+ for best rates |
| Minimum Down Payment | 3.5% ($8,750 on $250K) | 3% ($7,500) with some programs |
| Mortgage Insurance | MIP for life (if <10% down) | PMI removed at 20% equity |
| Upfront Insurance Fee | 1.75% of loan (added to balance) | None |
| Loan Limit (Monroe Co.) | $524,225 | $766,550 conforming |
| Property Standards | Stricter - appraiser flags issues | Standard appraisal |
| SONYMA Compatible | ✓ Yes | ✓ Yes |
| Seller Concessions | Up to 6% of purchase price | 3-9% depending on down payment |
| DTI Limit | Up to 57% with compensating factors | Up to 50% with strong profile |
Monthly Payment Comparison
Based on a $250,000 Rochester home. Does not include property taxes or homeowners insurance.
FHA 3.5% Down
MIP never goes away (<10% down)
Conventional 5% Down
PMI removed ~yr 9 at 3.5% appreciation
Conventional 10% Down
PMI removed ~yr 5
Conventional 20% Down
Lowest payment, highest upfront
Pros & Cons
FHA Loan
Conventional Loan
Frequently Asked Questions
Should I get an FHA or conventional loan in Rochester NY?
For credit scores below 680 or less than 10% down, FHA is usually better due to lower rates and easier qualification. Buyers with 680+ credit and 5-10% down should compare both - conventional PMI can be lower than FHA MIP. Always use conventional with 20% down.
What is the FHA loan limit in Monroe County NY?
The 2026 FHA loan limit for Monroe County, NY is $524,225 for a single-family home - well above the $250,000 county median, so the FHA limit is not a constraint for most Rochester buyers.
Can I use SONYMA grants with an FHA loan?
Yes. SONYMA programs (Homebuyer Dream Program, DPAL) are compatible with FHA loans. Many Rochester first-time buyers stack SONYMA grants with FHA financing to minimize cash-to-close. A SONYMA-approved lender can structure both simultaneously.
How long does FHA mortgage insurance last?
If your FHA down payment is less than 10%, mortgage insurance (MIP) lasts the life of the loan - it never goes away. With conventional, PMI is automatically removed at 20% equity, typically in 7-9 years at current Rochester appreciation rates.
Run your own numbers
Plug in your actual down payment and credit score to see which loan type costs less.