FHA loans require lower credit scores and down payments, making them suitable for buyers with limited savings or credit challenges, but they include upfront and ongoing mortgage insurance premiums and are limited to primary residences with lower loan limits. Conventional loans need higher credit scores, offer more flexibility for property use, and allow mortgage insurance removal once sufficient equity is built, often resulting in lower long-term costs for qualified borrowers. Choose based on credit, down payment, property type, and financial goals.