FHA vs. Conventional Loans: Which Fits First-Time Buyers in Spring, TX?
FHA vs. conventional loans compared for first-time homebuyers in Spring, TX — down payments, mortgage insurance, credit scores, and loan limits.
This is the question I get most from first-time buyers in Spring, and there's no single right answer — it depends on your credit, your down payment, and how long you plan to keep the loan.
Down payment
- FHA: minimum 3.5% down, with more flexible credit requirements.
- Conventional: can go as low as 3% down for qualifying first-time buyers, though 5% is more typical.
Mortgage insurance — the part that surprises people
FHA mortgage insurance (MIP) generally stays on the loan for its life unless you refinance out of it. Conventional private mortgage insurance (PMI) automatically cancels once you reach 78% loan-to-value, and can often be removed sooner by request.
If you plan to stay in the home long-term and can hit conventional's slightly higher credit bar, that PMI cancellation can save real money over time.
Credit score flexibility
FHA is generally more forgiving of lower credit scores and past credit issues, which makes it the more accessible starting point for a lot of first-time buyers.
Loan limits in the Spring / Montgomery County area
For 2026, the conforming (conventional) loan limit is $832,750 and the FHA limit is $541,287 in Montgomery County — both comfortably cover most starter and move-up homes in the Spring area.
How to decide
Run both scenarios side by side with real numbers before you commit — the "better" loan is almost always the one that matches your actual credit profile and how long you're staying, not a blanket rule.
Get an FHA vs. conventional comparison for your situation →
Game On Mortgage, LLC — NMLS #2468752 / #1808045. Equal Housing Opportunity. Loan limits reflect 2026 figures and are subject to change; not a commitment to lend.