VA vs FHA Mortgage
For eligible veterans, active-duty service members, and qualifying surviving spouses, the VA loan is almost always the better product. No down payment, no monthly mortgage insurance, and competitive rates. FHA is a fallback if VA eligibility is unavailable or for a specific scenario where FHA fits better.
VA Mortgage
Zero down, no monthly MI, for eligible veterans.
Best for: Anyone with VA eligibility — almost always the better choice.
Pros
- +0% down payment
- +No monthly mortgage insurance
- +Competitive 30-year fixed rate
- +Funding fee can be financed
- +Assumable
Cons
- −VA funding fee 1.25–3.3% upfront (waived for some disability statuses)
- −Property must meet VA Minimum Property Requirements
FHA Mortgage
Government-backed loan with 3.5% down minimum.
Best for: Borrowers without VA eligibility.
Pros
- +3.5% down with 580+ FICO
- +Flexible credit
Cons
- −Lifetime MIP if down < 10%
- −3.5% minimum down payment
- −Property must meet FHA standards
| Field | VA Mortgage | FHA Mortgage |
|---|---|---|
| Min FICO | 580+ at most lenders (no formal VA minimum) | 580+ (500+ with 10% down) |
| LTV (purchase) | Up to 100% | Up to 96.5% |
| LTV (cash-out) | Up to 100% | Up to 80% |
| Income docs | Standard income docs + residual income test | Standard income docs |
| Term | 30-year fixed | 30-year fixed, 15-year |
| Time to close | 30–45 days | 30–45 days |
Which one should you choose?
- VA Mortgage: choose VA if you have eligibility. Lower total cost, no MI, no down payment.
- FHA Mortgage: choose FHA only if VA is unavailable.
- A veteran with eligibility almost always benefits from VA — the funding fee is a fraction of multi-year FHA MIP cost.
Frequently asked questions
Can I use VA for a second home or investment property?
No. VA loans require primary residence occupancy. You can move out later and the loan stays in place, but you must occupy at origination.
How many times can I use VA?
Multiple times. Entitlement can be partially or fully restored after each loan is paid off, and partial entitlement allows simultaneous VA loans in many cases.
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DPA / First-Time Buyer
State and local down payment assistance programs for first-time homebuyers. Grants, forgivable seconds, and deferred-payment seconds. Available nationwide.
FHA vs Conventional
FHA or conventional mortgage? Compare down payment, FICO, MIP/PMI, loan limits, and which fits your scenario as a homebuyer.
Today's mortgage rates
Conventional
5.875%
5.911% APR
FHA
5.250%
5.278% APR
VA
5.250%
5.275% APR
Conv: 80% LTV, 780 FICO. FHA: 96.5% LTV, 680 FICO. VA: 100% LTV, 680 FICO. 30-yr fixed. Your rate may vary.