An FHA loan and a conventional loan can both help finance a primary residence in the Atlanta area. The better choice depends on your full financial picture, not a single advertised down payment or interest rate.
Start with cash to close
HUD says an FHA down payment can be as low as 3.5% for eligible borrowers. Conventional loans also offer a range of down payment options. In either case, plan for closing costs and prepaid items in addition to the down payment. Ask for a written estimate based on the same purchase price and down payment so the comparison is useful.
Compare mortgage insurance and payment
Mortgage insurance rules differ between FHA and conventional loans. A conventional loan with less than 20% down typically requires private mortgage insurance. FHA loans have their own mortgage insurance structure. Ask your loan officer to show the monthly payment, any upfront charges, and how the insurance may change over the life of each loan.
Think about the home and your plans
Property condition, loan limits, occupancy, and underwriting requirements can affect which loan works for a specific home. If you plan to stay a long time, the total cost over several years matters. If you expect to sell or refinance soon, upfront costs may deserve more weight. No comparison is complete until it uses the actual property and your qualifications.
For an Atlanta purchase, I can prepare a side-by-side review showing estimated cash to close, monthly payment, and the main tradeoffs. Contact me with your target price and comfortable payment range.
Sources: HUD: Let FHA loans help you; CFPB: Understand different kinds of loans; CFPB: Down payments.