FHA vs. Conventional Loans: What’s the Difference, and Which Is Right for You?

Buying a home comes with one big question: how are you going to pay for it?
For most buyers, that means choosing between an FHA loan or a Conventional loan — and understanding the differences can help you save money and stress.

What’s an FHA Loan?

An FHA loan is backed by the Federal Housing Administration. It’s designed to make homeownership more accessible — especially for first-time buyers or those with lower credit scores.

Pros:

• Lower credit score requirements (typically 580+)

• Down payments as low as 3.5%

• Easier approval if you have limited credit history

Cons:

• You’ll pay mortgage insurance for the life of the loan (which increases monthly payments)

• Property must meet FHA condition standards

• Loan limits are capped depending on the area

What’s a Conventional Loan?

A Conventional loan isn’t insured by a government agency — it’s offered by banks, credit unions, and private lenders.

Pros:

• No upfront or lifelong mortgage insurance if you put down at least 20%

• More flexibility for higher loan amounts

• Great for strong credit borrowers (typically 620+)

Cons:

• Stricter credit and income requirements

• Larger down payments can be needed to get the best rate

• Closing costs can be higher depending on your lender

Which One’s Right for You?

If you want an easier entry into homeownership, FHA might be your best bet.
If you have strong credit and a bit more saved up, a Conventional loan can help you save on long-term costs.

Pro Tip: Talk to a local lender early. They can help you compare your real numbers side-by-side. Even small differences in rates or down payments can have a big impact over time.

Final Thoughts

There’s no one-size-fits-all loan. The right choice depends on your credit, goals, and how long you plan to stay in the home. Whether it’s FHA or Conventional, what matters most is working with professionals who help you make confident, informed decisions.

Thinking about buying a home? Let’s talk about your options and connect you with a trusted local lender.
Beck Rivera Real Estate — Helping You Move with Clarity and Confidence.

Should You Get a Pre-Inspection Before Selling Your Home in Albuquerque?

When preparing to sell a home, many Albuquerque homeowners wonder whether it’s worth doing a pre-listing inspection. This is when you hire a home inspector before putting your property on the market, instead of waiting for the buyer’s inspection after an offer is accepted.

Like most strategies in real estate, pre-inspections have pros and cons. Here’s what you should know before making the decision.

Benefits of a Pre-Inspection

• Fewer Surprises: By uncovering issues upfront, you won’t be blindsided by a buyer’s inspection later.

• Pricing Power: Knowing the condition of your home can help you set a realistic asking price.

• Buyer Confidence: Sharing a pre-inspection report shows transparency, which can make buyers more comfortable making an offer.

• Negotiation Advantage: If you’ve already repaired major items, buyers may have less room to negotiate.

Drawbacks of a Pre-Inspection

• Upfront. Cost: You’ll pay for the inspection yourself (typically $300–$500).

• Disclosure Obligations: In New Mexico, if you discover problems and don’t fix them, you’re legally required to disclose those issues to buyers.

• Buyer Inspections: Even with your report, most buyers will hire their own inspector. That could mean double reports, which may uncover other issues, and potentially more negotiations.

How Pre-Inspections Fit Into the Seller’s Disclosure

If your pre-inspection reveals issues you don’t repair, you’ll need to include them in your Seller’s Property Disclosure. That doesn’t mean your home won’t sell — but it does mean buyers will know about the issues up front, and they may use that information during negotiations.

When Pre-Inspections Make Sense

• Older homes with a lot of “unknowns.”

• Competitive markets where buyers want confidence.

• If you plan to repair big-ticket items anyway, and want to show proof.

Seller Tip

If you decide on a pre-inspection, work with your real estate broker to:

• Choose what repairs to complete before listing.

• Decide how to present the inspection report to buyers.

• Build a strategy for addressing smaller issues without giving up too much leverage.

Bottom Line

A pre-inspection can be a powerful tool, but it’s not always necessary. The key is having a plan. Done thoughtfully, it can make your listing stronger and give buyers confidence. Done without strategy, it can hand buyers more leverage than you’d like.

Thinking about selling your Albuquerque home? Let’s talk through whether a pre-inspection makes sense for you.

Albuquerque Home Inspection & Resolution Process for Sellers

If you’re selling a home in Albuquerque, it’s a matter of time before you encounter the inspection and resolution process. It’s one of the most important steps between accepting an offer and closing. Here’s what you need to know as a seller in New Mexico:

Seller’s Disclosure in New Mexico

Before listing, you’ll complete a Seller’s Property Disclosure. This form shares known issues with your home, such as roof leaks, plumbing repairs, or past damage. Being upfront builds trust and helps avoid disputes later.

Buyer’s Home Inspection

Once under contract, the buyer usually schedules inspections. Inspections can be general or specific - such as electrical, sewer, or termite inspections. Even if you’ve disclosed issues, an inspection may uncover new concerns.

Resolution Period

After inspection, the buyer can submit a Notice of Objections. They may ask for:

• Repairs

• A price reduction

• Closing cost credits (seller concessions)

As a seller, you can agree, negotiate, or decline certain requests. The goal is to find common ground so the sale moves forward.

Seller Tip

Want fewer surprises? A pre-listing inspection can identify issues early and help you decide what to fix before going on the market. However, there’s a catch! Known issues discovered need to be disclosed if they’re not addressed.

Bottom line: The inspection and resolution process is a normal part of selling your home in New Mexico. With the right strategy, you can handle it smoothly and keep your transaction on track.