FHA loans and conventional loans each offer unique benefits depending on your financial situation. FHA loans are government-backed and generally easier to qualify for, with lower down payment requirements (as low as 3.5%) and more lenient credit score criteria, making them ideal for first-time homebuyers or those with limited savings. However, FHA loans require mortgage insurance premiums (MIP) for the life of the loan if your down payment is less than 10%. In contrast, conventional loans often require higher credit scores and larger down payments, but they offer more flexibility in terms of loan amounts and allow for the removal of private mortgage insurance (PMI) once you reach 20% equity in your home. Choosing between the two depends on your financial goals, credit history, and how long you plan to stay in the home.