FHA vs Conventional Refinance
The right answer depends on your situation — here is a side-by-side look at fha vs conventional refinance for 2026, with the real figures.
If you have built 20%+ equity and 620+ credit, refinancing an FHA loan into a conventional one removes FHA's lifetime MIP entirely — often the single biggest savings move for an FHA borrower.
| Factor | FHA | Conventional Refi |
|---|---|---|
| Removes FHA MIP | No | Yes |
| Min equity | 3.5% | Usually 5-20% |
| Min score | 580 | 620 |
| MI after | MIP | None at 20% equity |
The bottom line
Once you hit 20% equity with good credit, the conventional refi usually wins.
Run both options with a lender before deciding — the right choice can shift by a few thousand dollars depending on your exact credit score, down payment, and how long you plan to stay in the home.
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Frequently Asked Questions
- FHA vs Conventional Refinance — which is better in 2026?
- Once you hit 20% equity with good credit, the conventional refi usually wins.
- Can I switch later?
- Yes. Many borrowers start with FHA and refinance into another loan once their credit and equity improve, which can also remove FHA mortgage insurance.