Does FHA mortgage insurance ever go away?

FHA's general minimum is around 580 for the lowest 3.5% down payment, with a larger down payment, roughly 10%, required for scores from 500 to 579. In practice many lenders set their own higher minimums, so the score you actually need depends on the lender.

As little as 3.5% of the purchase price when your credit score meets the standard minimum. That money can come from savings, a documented gift from family, or an eligible down payment assistance program.

A standard FHA loan requires the home to meet minimum property standards at appraisal, so a home needing major repairs can be a problem. FHA also offers a renovation loan option that rolls repair costs into the mortgage, which is worth asking a lender about.

Neither is better for everyone. Buyers with strong credit often pay less per month with a conventional loan and PMI, while buyers with lower scores or less savings often come out ahead with FHA. A lender can price both for your situation so you can compare.