FHA Vs. Conventional: Which Fits Longview Prices?

Buying in Longview and trying to decide between FHA and conventional financing? With prices hovering in the mid 300s to low 400s, the right loan can make a big difference in your monthly payment and how quickly you build equity. You want a clear, local comparison that fits your budget and timeline. In this guide, you’ll see how each option works with Longview prices, what to expect with mortgage insurance and appraisals, and how to choose based on your situation. Let’s dive in.

Longview prices and loan limits at a glance

Longview home values sit in a range that keeps both FHA and conventional options open for most buyers. Recent trackers show typical values from the mid 300s to low 400s. For example, Zillow’s ZHVI was about 387,000 as of late August 2025, while Redfin reported a city median near 370,000 in August 2025 and Cowlitz County around 445,000. Local incomes matter too. The city’s median household income is about 60,000 to 61,000 according to the U.S. Census QuickFacts.

• Longview median household income: U.S. Census QuickFacts
• 2025 FHA single-family loan limit for Cowlitz County: $524,225
• 2025 conforming loan limit for single-family homes in Cowlitz County: $806,500

You can confirm both loan limits in one place on Bankrate’s Washington county loan limits summary. The takeaway is simple. Typical Longview prices fit comfortably under the FHA limit, so FHA is a viable option. Conventional conforming loans cover significantly higher price points.

FHA vs conventional: key differences

Down payment and credit

• FHA: Minimum 3.5% down if your FICO is 580 or higher. Some lenders require higher scores, and borrowers with 500 to 579 generally need 10% down. See program basics at FHA loan requirements.
• Conventional: Some programs allow 3% down for eligible buyers, often with stronger credit. A common minimum FICO is around 620, and pricing improves with higher credit scores and larger down payments. Learn more about options like Fannie Mae HomeReady.

Mortgage insurance cost and duration

• FHA: You pay an upfront mortgage insurance premium and an annual mortgage insurance premium that is part of your monthly payment. Many 30-year FHA purchase loans carry an annual MIP near 0.50% depending on loan size and LTV. MIP can last 11 years or for the life of the loan based on your original LTV. See details at FHA mortgage insurance.
• Conventional: Private mortgage insurance varies with credit score and down payment. The big benefit is that PMI can be removed. You can request cancellation at 80% loan-to-value, and it must drop off at 78% by law. Read the rules from the Consumer Financial Protection Bureau.

Appraisals and property condition

FHA appraisals check HUD Minimum Property Requirements focused on safety, soundness, and security. That can mean required repairs before closing if issues are visible. Conventional appraisals are generally less prescriptive about minor defects. See common FHA appraisal requirements at NerdWallet’s guide.

Seller concessions

FHA allows sellers and other interested parties to contribute up to 6% toward a buyer’s closing costs and prepaid items. Conventional limits vary by LTV and often cap at 3% when LTV is above 90 percent. Learn FHA specifics at this FHA seller contributions overview.

What this means for a typical Longview purchase

Let’s use a sample purchase price of 380,000, which sits squarely in Longview’s mid-range. Your exact numbers depend on rates, credit, and mortgage insurance pricing, but the tradeoffs are consistent.

• If you have a FICO near or above 580 and limited savings, FHA’s 3.5% down and up to 6% seller concessions can reduce cash to close. Expect monthly MIP for many years, possibly for the life of the loan.
• If your credit is strong and you can put 10 to 20 percent down, conventional often delivers a lower total mortgage insurance cost since PMI can be removed at 80 percent LTV. Appraisal repair lists are often shorter, which can smooth closing.

Because Longview prices are under the FHA limit, both paths are open for most homes. Your lender’s quote will show which is cheaper month to month.

Which loan fits your situation

• Choose FHA if you need low down payment flexibility, are rebuilding credit, plan to use gift funds, or want up to 6 percent in seller help for closing costs.
• Choose conventional if your credit is higher, you can put more down, or you want PMI that can be removed and typically fewer repair hurdles during appraisal.

Quick checklist before you choose

Bring these questions to your lender and agent so you can compare apples to apples:

• What are the lender’s minimum credit score and debt-to-income overlays for FHA and conventional? See baseline rules at FHA loan requirements.
• What is the exact FHA mortgage insurance for my scenario, including upfront and annual MIP? Get the line items. Review how MIP works at FHA mortgage insurance.
• What would my conventional PMI be with my credit and down payment, and when can I remove it? See cancellation rules from the CFPB.
• Will the appraisal likely require repairs, and who will handle them? Get familiar with FHA appraisal requirements.
• Are there down payment assistance options I can pair with my loan? Start with the state’s programs via the Washington Home Advantage overview and check local options like Longview’s Self-Help Housing page.

For sellers in Longview

You may see good buyers using both FHA and conventional financing. FHA offers can be strong when buyers need closing cost help, but they may come with repair requests tied to the appraisal. Conventional buyers sometimes face fewer repair conditions and have PMI that will eventually be removed. Ask for a solid pre-approval and clear appraisal timelines so you can compare offers with confidence.

Ready to compare your numbers side by side and tailor your strategy to today’s Longview prices? Reach out to Karen Higgins for patient, local guidance and a clear plan.

FAQs

Will an FHA loan cover a typical Longview home in 2025?

• Yes. The 2025 FHA single-family loan limit for Cowlitz County is about $524,225, which covers most Longview homes in the mid 300s to low 400s. Confirm limits on Bankrate’s county summary.

What is the main cost difference between FHA and conventional loans?

• FHA adds upfront and annual mortgage insurance that can last many years. Conventional PMI often costs less for higher-credit buyers and can be canceled at 80 percent LTV. See FHA mortgage insurance and the CFPB’s PMI cancellation rules.

Can a Longview seller pay a buyer’s closing costs with FHA or conventional financing?

• FHA allows up to 6% in seller contributions toward closing costs and prepaid items. Conventional limits depend on LTV and are often 3% at higher LTVs. See details at this FHA concession guide.

Are FHA appraisals stricter than conventional in Washington?

• FHA appraisals apply HUD property standards focused on safety and habitability, which can require repairs before closing. Conventional appraisals are generally less prescriptive about minor issues. Learn more in this FHA appraisal overview.

Where can Longview first-time buyers find down payment assistance?

• Start with the Washington State Housing Finance Commission’s programs summarized here: Home Advantage overview. Locally, explore Longview’s Self-Help Housing resources to see if you qualify.