If you have a low debt-to-income ratio, high credit scores and are planning to purchase a higher valued home, choosing a Conventional Loan over an FHA loan is typically a better option. One of the main advantages of a Conventional Loan is that you can get rid of Private Mortgage Insurance by putting less than 20% down, which will automatically fall off once you accumulate 20% equity in the home. This will help you lower your mortgage payment without having to refinance with an FHA Loan. Additionally, Conventional Loans are the ideal choice when your loan amount is greater than $421,000.