Both conventional and FHA loans offer flexible financing options. However a conventional loan often has stricter qualification requirements. The benefit, if you qualify, is that you also get better options when it comes to your mortgage insurance, term lengths, and closing costs, as well as a lower interest rate. FHA loans differ in that they’re insured by the government, so lenders don’t need you to meet the same strict requirements. If you have a lower credit score, an FHA loan may be the most affordable loan for you. Although it may provide fewer options than a conventional loan, it does provide competitive interest rates and low down payment options.