Compare loans · today’s rates
640 Credit, 5% Down: FHA or Conventional?
You have a 640 credit score and 5% down on a $375,000 home in Virginia. You qualify for both FHA and conventional. Most lenders steer you toward whichever one they prefer. Here are both, priced on today's rates, with the math done for you.
The numbers
Side by side, priced today
640 credit · 5% down · $375,000 home · priced todayRates as of September 25, 2026
30-year fixed
FHA
Rate
6.625%
APR
7.527%
- Payment (principal & interest)
- $2,321
- Mortgage insurance
- $148/mo
- Points
- 1.88 · $6,701
- Closing costs
- $16,500
- Down payment
- $18,750
- Total loan amount
- $362,484
- Cash to close
- $35,250
30-year fixed
Conventional
Rate
7.625%
APR
8.692%
- Payment (principal & interest)
- $2,522
- Mortgage insurance
- $282/mo
- Points
- 1.99 · $7,100
- Closing costs
- $16,731
- Down payment
- $18,750
- Total loan amount
- $356,250
- Cash to close
- $35,481
FHA saves
$334/mo
on your monthly payment vs Conventional
FHA saves
$42,116
in total costs over 10 years
Cash at closing
Even
within $231 of each other
30-year fixed purchase, single-family primary residence, Virginia. The rate, points and lender costs are Mable’s, and we stand behind them. Title, local taxes, insurance and other third-party costs are county-level estimates, and they’re the same whichever loan you choose.
The math
What the difference really costs you
- Monthly payment. FHA is $2,860 a month and conventional is $3,194, including taxes and insurance. That's $334 a month in FHA's favor.
- Up front. FHA adds a $6,234 upfront mortgage insurance premium, rolled into the loan so you don't pay it in cash. Cash to close is $35,250 with FHA and $35,481 with conventional, close to a wash.
- Over time. Counting closing costs, interest and mortgage insurance, conventional costs less at first. FHA pulls ahead after 1.3 years and is $42,116 cheaper after 10 years.
- Mortgage insurance. FHA mortgage insurance stays for the life of the loan. Conventional mortgage insurance ends after about 12.5 years.
Run your own numbers
Everything on this page, for your exact scenario
Your Mable dashboard runs this comparison with your numbers and keeps it updated as rates move. Swipe to see what you get.
Example screens, filled in with this page’s numbers.
Pros and cons
For this scenario, not in general
FHA
- Rate is 1% lower than conventional at a 640 score.
- Mortgage insurance costs the same at any credit score.
- The seller can pay up to 6% of the price toward your closing costs.
- A $6,234 upfront mortgage insurance premium is added to your loan.
- At 5% down, mortgage insurance never comes off. Removing it means refinancing later.
- The appraisal checks the home's condition more strictly.
Conventional
- Mortgage insurance drops off on its own after about 12.5 years, sooner if you ask once you reach 20% equity.
- No upfront mortgage insurance fee.
- Mortgage insurance is priced on your credit: $282 a month here vs $148 on FHA.
- The seller can only pay 3% of the price toward closing costs under 10% down.
- Rate is 1% higher than FHA at this score.
Our take
What we’d do
FHA. At 640 credit with 5% down, it's the better loan whether you keep it 5 years or 10.
We'd take FHA here, with a plan: once your home has 20% equity, look at refinancing to conventional to drop the mortgage insurance for good. We'll watch rates for you and tell you when it makes sense. Either way, we price both for your exact numbers before you decide.
The Mable way
No haggle. No hassle.
Great rates, right up front, for every customer.
Our best rate from the start
No negotiating and no games. The rate we show you is the rate we honor.
A real person answers
Call or text and you'll hear back fast, all the way to closing.
No late surprises
We check your credit and documents before we pre-approve you.
Nearby scenarios
Close to your numbers?
Get your custom quote in 60 seconds
Today’s rates, priced for your scenario.
- Just a few questions
- Instant, automated pricing
- No hard credit pull
Reviewed by Andrew D'Amato — President & Mortgage Expert · NMLS #1289793