Difference between conventional and fha loan. The main difference between FHA and conventional loans is government backing. FHA loans are insured by the Federal Housing Administration (FHA), allowing for more flexible eligibility requirements, such as lower credit scores and down payments. Conventional loans are not backed by the government and typically have stricter requirements for credit scores, down payments, and debt-to-income ratios. #mortgagetips #homebuying #homebuyertips