A 3% down conventional purchase loan is preferable over a more expensive government FHA loan, as long as you have the credit score, income and assets to qualify. With a 3% conventional loan, you will need a minimum credit score of 680. Improved guidelines are available because we have "platinum" status with a premiere mortgage insurance company and we are a direct lender with Fannie Mae. There are some good reasons to consider an FHA loan as well. FHA loans have very competitive interest rates even if the borrower has a lower credit score. Also, FHA loans allow for 100% of the down payment to be gift money from a family relative. With whichever loan option is best for you, we have local, "In-house" underwriting and document preparation which helps to make for a smoother and faster transaction. As a professional mortgage lender, I help my clients explore their options without cost or obligation