If you’re looking to buy a home in the Puget Sound area, one of the biggest choices you’ll face is how to finance it. Two of the most popular options out there are FHA loans and conventional loans—but what’s the difference, and which one’s right for you?
Let’s break it down in plain English.
FHA Loans: Friendly and Flexible
An FHA loan is backed by the government and designed to help more people become homeowners—especially if you’re just starting out, or your credit history isn’t picture perfect.
Why Puget Sound buyers go FHA:
- Low down payments (as little as 3.5%)
- More forgiving credit score requirements
- Easier approval if you’ve had financial hiccups
Conventional Loans: More Options, Less Insurance
Conventional loans aren’t government-backed—they come from private lenders. These are ideal if you’ve got good credit, stable income, and maybe a bit more saved for a down payment.
Why conventional might be your move:
- You can put down as little as 3%
- No mortgage insurance if you put down 20% or more
- Usually better long-term costs if your credit is strong
Quick Comparison
| FHA Loan | Conventional Loan |
| Lower credit score okay (580+) | Needs decent credit (620+) |
| 3.5% down minimum | As low as 3%, or 20% to skip insurance |
| Mortgage insurance required | Insurance optional if 20% down |
| Great for first-time or rebuilding buyers | Great for buyers with strong financials |
House Hunting in Puget Sound? We’ve Got You.
At Sargent Funding, we help people all across the Puget Sound region figure out the best loan options based on their real-life situation—not some cookie-cutter checklist.
Whether you’re drawn to the flexibility of FHA or the freedom of a conventional loan, we’ll help you understand your options and get pre-approved fast.
💬 Let’s make your home goals happen.
Reach out to Sargent Funding and we’ll walk you through it all—no pressure, just expert advice and local experience you can count on.
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