It’s the question I get most from Tampa homebuyers: should I go FHA or conventional? Neither is “better.” Each fits a different situation. Here’s how to tell which one fits yours.
The short version
| FHA | Conventional | |
|---|---|---|
| Backed by | Federal Housing Administration | Not government-backed (Fannie Mae, Freddie Mac) |
| Credit | More flexible with lower scores | Best terms with stronger credit |
| Mortgage insurance | Upfront premium plus a monthly premium | Monthly PMI with a smaller down payment |
| Removing mortgage insurance | Often stays for the life of the loan unless you refinance | Can be removed once you build enough equity |
| 2026 limit, Hillsborough County | $541,287 | $832,750 |
| Condos | The building must be FHA-approved | The building must pass a lender’s project review |
When FHA usually fits
- Your credit score is still building, or you’ve had a recent credit event.
- You want a low down payment and your debts are on the higher side.
- You’re using down payment assistance like Hillsborough County’s Home Sweet Home program, which pairs with FHA loans.
When conventional usually fits
- Your credit is strong. Conventional pricing rewards higher scores.
- You want mortgage insurance you can remove later, which can mean a lower payment down the road.
- You’re buying above the FHA limit, a second home or an investment property.
The Tampa Bay twist: condos
Florida’s condo safety laws changed condo financing. Many buildings now need milestone inspections and fully funded reserve studies. Very few Florida condo buildings are FHA-approved, and Fannie Mae and Freddie Mac tightened their condo reviews in 2026. If you’re buying a condo, have me check the building’s financing status before you make an offer.
Don’t forget the rest of the payment
In Tampa Bay, homeowners insurance, flood insurance and property taxes can swing your monthly cost as much as the loan type does. I compare the full payment both ways, not just the loan.
How I help
As a broker, I can price both options side by side and show you the real difference in your monthly cost and cash to close. Call me at (813) 322-5359 and we’ll find the right fit.
Khaled Morad, KCL Funding Group (a DBA of Go Rascal Inc.) · Individual NMLS 2096211 · Company NMLS 2072896 · Serving Tampa Bay · (813) 322-5359. This article is for general education only and is not a commitment to lend. Loan programs, limits and guidelines change; all loans are subject to credit approval and program requirements. Equal Housing Opportunity.