An FHA loan is insured by a government agency, while a regular loan, also known as a conventional loan, is not insured or guaranteed by any government agency. There are some other differences between an FHA loan and a regular loan:

  1. FHA loans require a lower down payment, which is as little as 3.5% down, while conventional loans may require 10-20% down.
  2. Borrowers with lower credit scores may qualify for FHA loans, while conventional loans require a credit score of 620 or higher.
  3. FHA loans require mortgage insurance, which protects the lender in case the borrower defaults on the loan. Conventional loans may also require private mortgage insurance (PMI) if the borrower puts less than 20% down.
  4. FHA loans have specific property requirements, including safety and livability standards. Conventional loans have fewer property requirements.