can someone explain the difference between conventional and fha?

Hi Gary: a conventional loan is the typical FannieMae/FreddieMac, conforming loans that we have been accustomed to for the last 50 years. These loans require 5% downpayment for a purchase and private mortgage insurance when loans amounts exceed 80% of value.An FHA loan is insured (not guaranteed) by HUD through its FHA department. These loans require a minimum of 3.5% borrower funds but guidelines make it easier than conventional for the average borrower to qualify. Neither loan is "difficult" for lenders or borrowers. In todays economic climate, documentation requirements are very specific and this means more paperwork to provide by the borrower. If you really can afford to pay the mortgage and your past credit history is average or better, there should be no problems getting the loan.