If you're planning to buy a home in Palm Beach County in 2026, one of the biggest decisions you'll make is choosing between an FHA loan and a conventional mortgage. With updated loan limits now in effect, it is important to understand how each option works in a higher-cost market like Palm Beach County. In this guide from Doherty Home Loans, we break down the rules and help you choose the loan type that fits your goals.
Need help comparing scenarios quickly? Start by reviewing FHA loans in Florida, then look at purchase options on New Home Purchases. If you want a fast payment estimate, use the Mortgage Calculator.
What Is an FHA Loan?
FHA loans are backed by the Federal Housing Administration. They can be a strong fit for first-time buyers and for borrowers who want a lower down payment or more flexible credit guidelines.
Key Features of FHA Loans (2026)
- Minimum credit score: 580 (with 3.5% down)
- Down payment: As low as 3.5%
- 2026 loan limits in Palm Beach County: Up to $1,249,125 for single-family homes (high-cost area ceiling)
- Mortgage insurance: Requires MIP regardless of down payment
If you are shopping locally, you can also explore FHA loans in West Palm Beach and compare loan types based on the neighborhoods you are targeting.
What Is a Conventional Loan?
Conventional loans are offered through private lenders and are not government-backed. They can be a great choice for borrowers with strong credit, stable income, and the ability to bring more funds to closing.
Key Features of Conventional Loans (2026)
- Minimum credit score: Typically 620 to 640+
- Down payment: As low as 3% for some first-time buyers; 5%+ for many other scenarios
- 2026 loan limits in Palm Beach County: Up to $1,249,125 (conforming high-cost area limit)
- Mortgage insurance: No PMI required with 20% down
For a local look at conventional guidelines, see conventional home loans in West Palm Beach.
FHA vs Conventional in Palm Beach County: 2026 Side-by-Side Comparison
Which Loan Is Better for You?
Choose FHA if:
- You have a lower credit score or limited credit history
- You need a lower down payment
- You want more flexible qualification terms
Choose Conventional if:
- You have higher credit and stable income
- You plan to put down 20% or more
- You want to avoid long-term mortgage insurance costs
What Is New in 2026 That Impacts Your Loan Choice
The Federal Housing Finance Agency increased 2026 conforming loan limits to $832,750 nationwide and up to $1,249,125 in high-cost areas like Palm Beach County. This change means:
- More homes can qualify for conventional financing
- FHA borrowers have greater access to higher-value properties
- You may not need a jumbo loan even for higher-priced homes in this region
If your purchase price exceeds the conforming limit, review Jumbo Loans to see what high-balance options may fit.
Local Expertise Matters in Palm Beach County
Whether you are shopping in Boca Raton, West Palm Beach, Delray Beach, or Jupiter, the market stays competitive. Having a local partner like Doherty Home Loans helps you stay current on guidelines, rates, and underwriting expectations.
Our team can help you compare FHA vs conventional quotes, estimate monthly payments including insurance, and get pre-approved so you can make stronger offers.
Get Pre-Approved with Doherty Home Loans
Choosing between FHA vs conventional in Palm Beach County in 2026 does not have to be stressful. With updated loan limits and expert guidance, the path to homeownership can be clearer.
Ready to Compare FHA vs Conventional?
Get a side-by-side quote and a clear recommendation based on your credit, down payment, and target home price.