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UpdatedAugust 22, 2026ReviewedAugust 23, 2026Where our FHA figures come from
Two suburban homes side by side, illustrating an FHA versus conventional loan comparison
FHA vs conventional

Which loan actually costs you less?

A full rule-by-rule comparison plus a live payment calculator that models FHA mortgage insurance against credit-score-priced private mortgage insurance.

Start My ApprovalSee Today's Rates
3.5%
Min. down payment
580
Min. FICO score
$1,249,125
2026 high-cost ceiling
Quick answer

FHA loan vs conventional loan: which is the better fit for you?

FHA wins on credit flexibility: 3.5% down at a 580 score with DTI to 56.9%. Conventional wins on cost once you're above roughly a 680 score with 5% down, because private mortgage insurance is cheaper than FHA MIP and cancels at 20% equity while FHA MIP usually lasts the life of the loan.

What this means for your mortgage

Below roughly a 680 score, FHA usually wins on payment; above it, conventional often costs less once mortgage insurance drops off.

Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 23, 2026 against HUD Handbook 4000.1

Compare both payments
TL;DR

FHA vs conventional: key takeaways

  • FHA minimum score 580; conventional generally 620–640
  • FHA down payment 3.5%; conventional as low as 3% for first-time buyers
  • FHA MIP is life-of-loan under 10% down; conventional PMI cancels at 20% equity
  • FHA allows 6% seller concessions vs 3% conventional under 10% down
  • FHA is assumable by a qualified buyer; conventional is not
  • Conventional is required for investment properties and second homes

FHA Loan Rates for FHA vs Conventional Scenarios

Everything on this page about FHA vs Conventional Scenarios comes back to one question: what does the loan actually price at? What you are quoted depends on the file — credit profile, base loan amount, down payment, property type, term and lock period each shift FHA pricing. Use the pricing form below to see live FHA options for your file, including provider APR and whether each option costs points or returns a lender credit.

Snapshot pricing unavailable

No current pricing snapshot — we never show sample rate figures.

Sample scenario: Florida primary residence, 30-year fixed FHA. Pricing is refreshed once every business day and can change between refreshes.

Loading the most recent FHA pricing snapshot…

Snapshot pricing is an example for the sample scenario described above. It is not a quote, an application, a pre-approval, a rate lock, an offer of credit or a commitment to lend, and it is not personalized to you.

APR is supplied by our pricing provider for the exact scenario priced. Other lender or third-party charges listed separately may not be reflected, and the final APR can change. Your final mortgage disclosures control.

A lender credit reduces eligible closing costs only. It cannot exceed those costs and is never cash back to the borrower.

Get my own FHA pricing

The three cards above are examples from the latest daily snapshot. Enter your own purchase price, down payment, credit score and location to see every eligible FHA option for your scenario, priced right now.

Compare the monthly payment

Same home, two loan types. Adjust the inputs to match your quote.

Scenario

FHA loan

Lower payment
$2,795/mo

Principal, interest & mortgage insurance only

Down payment
$14,875
Base loan
$410,125
Upfront MIP financed
$7,177
Total loan
$417,302
Principal & interest
$2,603
Annual MIP rate
0.55%
Monthly MIP
$191
Insurance ends
Life of loan

Conventional loan

$2,885/mo

Principal, interest & mortgage insurance only

Down payment
$21,250
Loan amount
$403,750
Upfront premium
None
Loan-to-value
95.0%
Principal & interest
$2,619
Annual PMI rate
0.79%
Monthly PMI
$266
Insurance ends
At 80% LTV on request
Monthly difference
$90 in favor of FHA

Taxes, homeowner's insurance and HOA dues are identical between the two and are excluded here. PMI figures are representative borrower-paid monthly rates; your actual rate comes from the mortgage insurer at underwriting. Not a quote or offer of credit.

See Today's Rates

Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.

Rule-by-rule comparison

FHA loanConventional loan
Minimum credit score500 with 10% down; 580 with 3.5% down620 typical for Fannie Mae / Freddie Mac
Minimum down payment3.5% (10% below 580 FICO)3% on HomeReady / Home Possible; 5% standard
Mortgage insurance1.75% upfront + 0.15%–0.75% annualPMI only above 80% LTV; no upfront premium
Can insurance be cancelled?No if under 10% down; 11 years at 10%+ downYes — automatically at 78% LTV, on request at 80%
Benchmark DTI31% / 43%, commonly to ~50% with AUS approval36%, up to 45–50% with strong reserves
Score-based pricingRate is largely score-neutralLoan-level price adjustments penalize lower scores
2026 loan limit (1-unit)$541,287 floor to $1,249,125 ceiling$832,750 baseline conforming
Seller contributionsUp to 6% of sales price3% under 10% down; 6% at 10–25% down
Gift funds100% of down payment may be giftedAllowed, with occupancy and source conditions
Property standardsHUD minimum property requirements applyAppraisal only; fewer condition requirements
Assumable by a future buyerYes, with lender qualificationNo
Bankruptcy / foreclosure wait2 yrs Ch. 7, 3 yrs foreclosure4 yrs Ch. 7, 7 yrs foreclosure
Streamline refinanceYes — no appraisal, no income docsNo equivalent; full refinance required

Which one should you choose?

FHA usually wins when…

  • Your credit score is below about 700 — FHA pricing barely moves with score while conventional pricing and PMI both worsen quickly
  • Your debt-to-income ratio is above 45%
  • You have a bankruptcy, foreclosure or short sale in the last four years
  • You need the seller to cover a large share of closing costs (6% vs 3%)
  • Your down payment is entirely gift funds

Conventional usually wins when…

  • Your score is 720+ and you are putting down 5% or more
  • You can reach 20% down and avoid mortgage insurance entirely
  • You are buying a condo that is not on the FHA-approved list
  • The property has condition issues that would fail HUD minimum property requirements
  • The loan exceeds the FHA limit in your county but stays inside the conforming limit

The hybrid strategy

Many buyers use FHA to get into the home, then refinance to conventional once the score improves or the home appreciates to 20% equity — which permanently removes the mortgage insurance. FHA's low barrier gets you the asset; the refinance optimizes the cost later.

FHA vs conventional questions

FHA loan vs conventional loan: which is the better fit for you?

Neither is universally better. FHA wins on credit flexibility — 580 FICO with 3.5% down, higher allowable debt ratios, and pricing that does not penalize a lower score. Conventional wins once your credit is strong and you have equity, because private mortgage insurance is cancellable at 20% equity while FHA mortgage insurance usually lasts the life of the loan.

What credit score do you need for FHA vs conventional?

FHA's floor is 500 with 10% down or 580 with 3.5% down. Conventional loans backed by Fannie Mae or Freddie Mac generally require 620, and pricing improves sharply above 740.

Can I refinance from FHA to conventional to drop mortgage insurance?

Yes, and it is the most common exit. Once your home has at least 20% equity based on a new appraisal, a conventional refinance eliminates FHA annual MIP entirely with no private mortgage insurance required.

Ready to see what you qualify for?

Talk with a licensed FHA broker about your scenario. Licensed in Florida and Colorado.

Start My ApprovalCall 877-813-7219

Which loan should you choose?

This is a good fit if…

  • Choose FHA: score under 680, higher DTI, thin savings, or recent credit events
  • Choose FHA: you need seller concessions above 3%
  • Choose FHA: the home needs renovation financing

Consider another path if…

  • Choose conventional: 680+ score with 5–20% down
  • Choose conventional: you want mortgage insurance to cancel
  • Choose conventional: it's a rental or second home

Quick answers

Which is cheaper overall?
Conventional, once your score is roughly 680+ — below that, FHA's rate and insurance pricing typically wins.
Can I refinance from FHA to conventional later?
Yes, and that's the standard exit: at 20% equity you refinance out and drop mortgage insurance entirely.
Which is better for a fixer-upper?
FHA 203(k) — conventional's HomeStyle equivalent has tighter credit requirements.
Which is cheaper long term?
It depends on credit score, down payment, and how long you keep the loan. FHA often wins early for lower credit; conventional usually wins once PMI can be removed.
Does conventional allow a lower down payment than FHA?
Some conventional programs allow 3% down, below FHA's 3.5%, but they require stronger credit and price PMI by risk.
Which is easier for a lower credit score?
FHA generally, because MIP is not credit-priced and HUD's minimums are lower — subject to lender overlays.
Do sellers prefer conventional offers?
Some do, based on appraisal repair concerns. A well-documented pre-approval and clean terms matter more than the program label in most markets.
How do appraisal rules differ?
FHA appraisals apply HUD minimum property requirements, so health and safety issues must be corrected; conventional appraisals are value-focused.
Which allows higher DTI?
FHA typically allows higher back-end ratios than conventional with compensating factors, though the automated engine drives both.
Can I compare both on the same property?
Yes. Running both scenarios side by side is standard practice before choosing a program.

Sources for this page

Program rules and figures on this page are taken from the primary government sources below, not from third-party summaries.

Simply Approved Mortgages is not affiliated with or endorsed by HUD, FHA, or any government agency.

Included with your FHA estimate

Get your FHA Pre-Approval Summary.

Complete the short form and we send back a full FHA breakdown: your county loan limit, the minimum FHA down payment, financed upfront MIP, monthly mortgage insurance, and an estimated payment — plus whether down payment assistance can cover your cash to close.

  • Maximum FHA loan amount for your county
  • Minimum FHA down payment and cash-to-close estimate
  • Upfront and annual MIP included
  • Estimated monthly payment with taxes and insurance
Get my FHA estimate

Takes about 3 minutes · No obligation · Summary emailed and shown on screen

Illustration only, generated from the information you enter. Not a Loan Estimate, pre-qualification, commitment to lend, or approval. Subject to appraisal, credit and income review, FHA guidelines, and final lender approval. Equal Housing Opportunity.

FHA Estimate Summary
Purchase price
$385,000
Down payment (3.5%)
$13,475
Base loan amount
$371,525
Financed UFMIP (1.75%)
$6,502
Est. monthly payment
Shown in your summary

Sample figures for illustration only — not a quote, rate lock, offer of credit or commitment to lend. Simply Approved Mortgages · NMLS #2620881 · Equal Housing Opportunity

Weighing it up

Pros and cons of FHA financing

The trade-offs below are specific to FHA financing. Reviewed August 23, 2026 against HUD Handbook 4000.1 and the current HUD county loan limit file.

What works in your favor

  • 3.5% down from a 580 FICO, with 100% of the down payment giftable.
  • Seller contributions of up to 6% of the sale price toward closing costs.
  • No income caps, and higher DTI is possible with documented compensating factors.

What to plan around

  • Annual mortgage insurance for the life of the loan at 3.5% down.
  • County loan limits cap the financed amount, not the purchase price.
  • HUD minimum property standards apply at appraisal.
Worked example

The FHA numbers behind this page

A $425,000 example shows the cash and loan structure FHA produces before pricing is added.

The FHA numbers behind this page
Purchase price$425,000
FHA down payment at 3.5%$14,875
Base loan amount$410,125
Upfront MIP at 1.75%, financed$7,177
Conventional 20% down for comparison$85,000

Illustration only — not a quote, rate lock, offer or commitment to lend. Subject to lender underwriting and approval.

Document checklist

What documents you need for FHA financing

This is the set an FHA underwriter typically asks for. Having it ready before you write an offer is the single biggest difference between a two-week and a six-week file.

Identity and residency

  • Government-issued photo ID and Social Security number
  • Two-year residence history with landlord contact where you rented

Assets

  • Two months of statements for every account used for down payment or reserves
  • A signed gift letter plus the donor's source of funds for any gifted money
  • Retirement statements when reserves are drawn from those accounts

Property and credit

  • Fully executed purchase contract with all addenda
  • Homeowners insurance quote, plus flood coverage where required
  • Written explanation for credit events, plus bankruptcy or foreclosure paperwork if applicable
Income documentation

Self-employed vs. W-2 employed: what it means for your FHA loan

Income documentation is where most FHA files slow down, and it depends on how you are paid. FHA does not apply a different credit score, down payment or county limit to self-employed borrowers — it applies a different documentation standard.

FHA documentation differences between W-2 employed and self-employed borrowers
ItemW-2 employedSelf-employed
History requiredTwo-year employment history, with gaps explained. A job change inside the same field is usually fine.Generally two years of self-employment. A shorter history can sometimes be considered when there is documented prior experience in the same line of work.
How income is calculatedBase pay from pay stubs and W-2s. Bonus, overtime and commission generally need a two-year history to be averaged in.Net income from tax returns, averaged and adjusted for allowable add-backs such as depreciation. Write-offs that reduce taxable income also reduce qualifying income.
Documents that open the file30 days of pay stubs, two years of W-2s, and a verification of employment.Two years of personal and business returns, year-to-date P&L and balance sheet, and evidence the business is still operating.
Verification at closingThe employer is re-verified shortly before closing; do not change jobs mid-process without telling your loan officer.Continued existence of the business is re-verified close to closing, typically through a third-party or licensing check.
Most common delayUnexplained gaps, a new job with variable pay, or a VOE the employer never returns.A declining year over year, or a large deduction that removes the very income needed to qualify.
What we suggestGet the VOE moving on day one — it is the item most often outstanding at the end.Have your accountant produce the year-to-date P&L before you shop, so qualifying income is known before you write an offer.

If you are W-2 employed

  • Pay stubs covering the most recent 30 days
  • W-2 forms for the last two years
  • A verification of employment; HUD Handbook 4000.1 Update 18 tightened the written and electronic VOE rules, so expect the employer record to be verified directly
  • Documentation of bonus, overtime or commission income if you want it counted

If you are self-employed

  • Two years of personal federal tax returns, all schedules
  • Two years of business returns for a partnership, S-corp or C-corp, plus K-1s
  • A year-to-date profit and loss statement and balance sheet
  • Business license, CPA letter or equivalent evidence the business is active

General FHA documentation guidance per HUD Handbook 4000.1, including Update 18 changes to written and electronic verification of employment. Requirements vary by borrower, property, lender and program, and all loans are subject to lender underwriting and approval. Sources: HUD Handbook 4000.1

Run the numbers for your county

FHA payment, affordability, closing cost and refinance calculators for the United States

Prefilled with the 2026 HUD reference median of $415,000 for the United States, a 0.90% effective property tax rate and a directional $2,300 annual homeowners premium. Change any input — the interest rate is your own assumption, not an offer.

$
%

FHA minimum is 3.5% at 580+ credit.

%

Your assumption — not a quoted rate.

yrs
%
$
Estimated total monthly payment
$3,262
Principal & interest
$2,576
FHA annual MIP
$184
Property tax
$311
Homeowners insurance
$192
Down payment
$14,525
Loan amount incl. financed UFMIP
$407,483
See Today's Rates

Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.

Estimates for general educational purposes only. Interest rates shown are assumptions you enter, not quoted rates, and nothing here is a rate lock, APR, payment quote, pre-approval, offer or commitment to lend. Results exclude HOA dues, flood or wind policies, mortgage insurance changes, points and lender-specific fees. FHA upfront MIP of 1.75% and annual MIP of 0.55% follow HUD Mortgagee Letter 2023-05 for a 30-year term at 3.5% down. Property tax and insurance inputs are directional state references, not a parcel-level bill. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state. All loans are subject to lender underwriting and approval. Equal Housing Opportunity. Sources: HUD Mortgagee Letter 2023-05 (MIP) · HUD Mortgagee Letter 2025-23 (2026 loan limits) · U.S. Census Bureau ACS · NAIC homeowners insurance · CFPB Closing Disclosure

Taxes, insurance and local expenses

What owning actually costs in the United States

Mortgage pricing moves the payment a little. Property tax and insurance move it a lot, and they are entirely local. These figures are built from the 2026 HUD county dataset for the United States and national tax and settlement conventions, reviewed August 23, 2026.

Estimated ownership costs in the United States on a $415,000 home
CostEstimateHow it works here
Property tax$311 / moAbout 0.90% effective on $415,000 — roughly $3,735 a year. Millage is set locally, so verify the parcel's actual bill.
Homeowners insurance$192 / moDirectional $2,300 a year for a single-family owner policy in the U.S.. Wind, hail and flood may be separate policies.
FHA annual mortgage insurance$184 / mo0.55% of the $400,475 base loan at 3.5% down, 30-year term, per HUD Mortgagee Letter 2023-05.
FHA upfront MIP$7,0081.75% of the base loan, normally financed into the $407,483 total loan amount rather than paid in cash.
State transfer / documentary taxVariesTransfer, deed, recordation and mortgage taxes are set state by state — several states charge none at all.
Settlement conventionTitle/escrow stateA title or escrow company customarily conducts the closing and issues the policy.

The expense buyers here miss most

Property tax and homeowners insurance vary far more between two states than mortgage pricing does — always re-price the escrow on the exact county before you write an offer.

How this affects the FHA file

Taxes and insurance are part of the qualifying payment, so a $503 escrow in your county consumes debt-to-income capacity before a single dollar of principal and interest is counted. Underwriting uses the post-closing figures, not the seller's current bill.

Estimates for general education only — not a quote, rate, APR, pre-approval, offer or commitment to lend. Property tax rates are effective rates derived from U.S. Census Bureau ACS data; actual millage is set by county, city, school and special districts. Insurance figures are directional annual premiums, not quotes. Transfer, deed, recordation and mortgage taxes summarise state-level statutes; counties and municipalities frequently add their own. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Sources: U.S. Census Bureau — ACS property tax data · NAIC Homeowners Insurance Report · CFPB — understanding closing costs

Simply Approved Mortgages Expert Insight
Comparison commentary · Last reviewed August 23, 2026

Let credit score and down payment pick the program

Below roughly a 680 score, FHA pricing and mortgage-insurance cost usually win. Above that, with meaningful equity, conventional PMI is typically cheaper and removable at 20% equity. We price both on the same property with the same assumptions, because the right answer changes with score, down payment, and how long the borrower expects to hold the loan.

Our recommendation

Have both programs quoted on the same scenario before choosing.

Simply Approved Mortgages · licensed mortgage broker · NMLS #2620881 · Equal Housing Opportunity
Ask Simply AI

Ask SAM anything about FHA loans in the United States

SAM is the Simply Approved Mortgages AI assistant, grounded in HUD Handbook 4000.1 and the 2026 HUD county limit file. It answers general FHA questions instantly. A licensed loan officer reviews every scenario before any terms are confirmed.

Hi — I'm SAM. Ask me about FHA loan limits, credit, mortgage insurance, down payment assistance or what an underwriter will need from you. General education only: I don't quote rates, and nothing I say is an offer or commitment to lend.

General information only — not advice, a quote, or an offer of credit.

Popular on this page

Talk to a licensed loan officer 877-813-7219

Ask Simply AI provides general educational information about FHA loan programs. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.

Where to go next

Continue with the FHA topic that matches where you are, or talk to a licensed loan officer about your own numbers.

How FHA loans work

What FHA insurance is and who it fits.

FHA requirements

Credit, income, DTI and property rules.

FHA credit score rules

580 vs 500–579 and what they change.

Down payment & assistance

3.5% minimum, gift funds and DPA options.

Mortgage insurance (MIP)

Upfront and annual MIP, and how long it lasts.

FHA loan limits

County-by-county HUD maximums.

FHA closing costs

What you pay and what a seller can cover.

FHA loan programs

203(b), 203(k), streamline, cash-out and more.

FHA calculators

Payment, affordability, MIP and break-even tools.

First-time buyer guide

Step-by-step from budget to closing.

Start My Approval Contact a licensed loan officer Submitting a request is not an application, approval or commitment to lend.
Down Payment Assistance

The FHA DPA Program

Short on cash to close? Ask about the FHA DPA, offered through Simply Approved Mortgages: 2.5%, 3.5%, or 5% of your loan amount toward your down payment and closing costs, structured as a 10-year repayable second lien at your first-mortgage rate + 2%. FICO 580+, primary residence only — it's an option on every loan program on this site.

How it works

Three tiers. Real money toward your home.

  • 2.5% / 3.5% / 5% of the lesser of purchase price or appraised value
  • Pairs with FHA, Conventional, VA, and USDA first mortgages
  • 10-year repayable second lien — no silent forgivable strings
  • Available to FICO 580+ primary-residence buyers
Full DPA program details
Not available in: New York, Washington, U.S. Virgin Islands, Guam, Northern Mariana Islands, and American Samoa. All loans subject to underwriting approval and program guidelines.
Amount calculator & eligibility checker

See how much assistance you may qualify for

Enter a purchase price, pick an assistance tier, and confirm property and residency. Results are illustrative — not a quote or commitment.

Simply Approved Mortgages DPA

DPA amount calculator & eligibility checker

Estimate 3.5% assistance on the lesser of price or appraisal, layered over a 30-year fixed FHA first mortgage.

Estimated DPA
$14,000
3.5% of $400,000
2nd-lien P&I
$174
10-yr · 8.500%

Amount calculator

Assistance tier
Lesser of price or appraisal
$400,000
DPA at 3.5%
$14,000
2nd-lien term
10-year fixed, repayable
2nd-lien rate
8.500%
Monthly P&I
$174/mo

Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear only on your Loan Estimate and Closing Disclosure.

Eligibility checker

Documentable qualifying income?

Willing to complete homebuyer education before closing?

Property in NY, WA, USVI, Guam, MP, or AS?

Answer each question above to see your preliminary result.

See Today's Rates

Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.

Preliminary self-check only — no credit pulled. Not a quote, lock, offer, or commitment to lend. Simply Approved Mortgages is not affiliated with HUD, FHA, VA, USDA, FHFA, or any government agency. Equal Housing Opportunity. NMLS# 2620881.

Our pricing philosophy

Transparency. Simplicity. Consumer Choice.

At Simply Approved Mortgages, we believe borrowers deserve clear information, professional guidance, and access to competitive mortgage solutions.

Our company is built around a straightforward philosophy: provide transparent mortgage guidance, maintain a consistent compensation structure on most transactions, and help borrowers make informed financing decisions based on their individual needs and goals.

For many mortgage transactions, Simply Approved Mortgages typically operates using a lender-paid compensation structure of approximately 1.50%. Actual compensation may vary based on lender requirements, loan program, state regulations, loan amount, and other transaction-specific factors.

We believe transparency helps consumers better understand the mortgage process and make informed decisions when comparing financing options.

Our promise

Mortgage financing should be understandable, transparent, and focused on helping consumers make informed decisions.

Our goal isn't to maximize compensation per transaction. Our goal is to build lifelong client relationships through transparency, service, and competitive mortgage solutions.

Why compensation transparency matters

Understanding all aspects of the financing process

Many borrowers spend significant time comparing interest rates, but may be less familiar with how mortgage companies and loan originators are compensated.

Compensation structures can vary among lenders, mortgage brokers, banks, credit unions, and other mortgage providers. Compensation is only one component of a mortgage transaction and should be evaluated alongside interest rates, APR, lender fees, discount points, closing costs, loan features, and overall loan suitability.

At Simply Approved Mortgages, we believe consumers benefit from understanding all aspects of the financing process before making a decision.

Interactive illustration

See how compensation scales by loan amount

Move the slider to compare a hypothetical 1.50% Simply Approved Mortgages compensation structure with a hypothetical 2.75% used by some other lending options. For educational purposes only.

$400,000
$50,000$2,000,000
Typical market comp at 2.75%$11,000
Simply Approved Mortgages at 1.50%$6,000
Potential closing cost difference
Hypothetical impact on lender compensation only
~$5,000

For illustration only. Figures are hypothetical and not a quote, offer, rate lock, or guarantee of savings. Lender compensation is one component of closing costs; actual loan terms, interest rates, fees, APR, and total costs vary by program, loan amount, credit qualifications, property, occupancy, state, and market conditions.

Illustrative compensation comparison

Comparing a hypothetical 1.50% to a hypothetical 2.75%

The example below compares a hypothetical 1.50% compensation structure used by Simply Approved Mortgages to a hypothetical 2.75% structure used by some other lending options, solely for educational purposes.

Loan AmountSimply Approved Mortgages (1.50%)Other lending options (2.75%)Difference
$250,000$3,750$6,875$3,125
$350,000$5,250$9,625$4,375
$500,000$7,500$13,750$6,250
$750,000$11,250$20,625$9,375
$1,000,000$15,000$27,500$12,500

These examples are illustrative only and are intended to demonstrate how different compensation percentages may produce different compensation amounts based on loan size.

These examples do not represent borrower fees, interest rates, APR, closing costs, loan terms, pricing, or savings, and should not be interpreted as a guarantee that any borrower will receive lower costs or better loan terms.

Our commitment to borrowers

Our goal is to provide

  • Professional mortgage guidance
  • Transparent communication throughout the loan process
  • Access to a broad range of mortgage programs
  • Competitive financing options based on borrower qualifications
  • A streamlined application and approval experience
  • Support for homebuyers, homeowners, and real estate investors
A team-focused approach

Support for every type of borrower

Whether you're purchasing a home, refinancing an existing mortgage, consolidating debt, or financing an investment property, our team is committed to helping you evaluate available options and make informed decisions.

Compare more than just the interest rate

When evaluating mortgage options, borrowers should consider the complete financing package

  • •Interest Rate
  • •Annual Percentage Rate (APR)
  • •Lender Fees
  • •Discount Points
  • •Closing Costs
  • •Loan Features and Flexibility
  • •Prepayment Terms
  • •Product Eligibility Requirements
  • •Customer Service and Support

The most appropriate mortgage solution depends on each borrower's individual financial circumstances, objectives, qualifications, and preferences.

Important Disclosure: Simply Approved Mortgages LLC typically utilizes a lender-paid compensation structure of approximately 1.50% on many mortgage transactions; however, compensation may vary based on lender requirements, loan program, state law, loan amount, borrower qualifications, and other transaction-specific factors. Compensation is only one component of mortgage pricing and does not, by itself, determine interest rates, APR, lender fees, closing costs, loan terms, or overall borrower costs. The information provided on this page is for general educational and informational purposes only and should not be construed as mortgage advice, a commitment to lend, an offer to extend credit, a rate quote, a loan approval, or a guarantee of savings. All mortgage loans are subject to credit approval, underwriting requirements, property approval, and program eligibility guidelines. Borrowers should carefully review all disclosures, including the Loan Estimate and Closing Disclosure, before proceeding with any mortgage transaction. Simply Approved Mortgages LLC • NMLS #2620881 • Equal Housing Opportunity.

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FHA Homebuyer Newsletter

FHA rate moves, county loan limits, and guideline changes — in your inbox.

Twice-a-month updates for buyers and homeowners: rate movement, FHA guideline changes, new down payment assistance programs, and the deals we're closing. No spam, unsubscribe anytime.

  • Weekly FHA rate snapshot
  • County loan limit updates
  • First-time buyer playbooks
  • DPA & program change alerts
FHA Newsletter

FHA rate updates, market trends, and program changes. No spam.

By subscribing, you consent to receive FHA rate and program update emails from Simply Approved Mortgages LLC. This is not an application for credit and not an offer or commitment to lend. Unsubscribe any time. Read our Privacy Notice.