VA Loan vs. Conventional in San Antonio: The 2026 Payment Math

The short answer

If you are eligible for a VA loan and buying in San Antonio, the VA loan is usually the cheaper monthly payment. You skip the down payment, you skip mortgage insurance entirely, and the funding fee is financed into the loan instead of paid up front.

Where the difference comes from

Conventional loans with less than 20% down carry private mortgage insurance until you reach 20% equity. That is a monthly cost with no benefit to you. VA loans have no monthly mortgage insurance at any down payment amount, including zero.

In exchange, VA charges a one-time funding fee that is financed into the loan. Service members with a service-connected disability rating are exempt from the funding fee entirely.

• VA: $0 down, no monthly mortgage insurance, one-time funding fee financed.
• Conventional: 3-20% down typical, PMI until 20% equity, no funding fee.
• VA rates are usually at or below conventional for the same credit profile.
• VA loans have no loan-level price adjustments for lower credit scores.

When conventional actually makes sense

There are real cases. If you are putting 20% or more down, there is no PMI on the conventional side and no funding fee, so conventional can be cheaper over the life of the loan. If you are buying an investment property or a second home, VA is not an option. And if you are intentionally preserving entitlement for a future purchase at your next duty station, using conventional now can be a strategic call.

How to run your own numbers

Bexar County property taxes and homeowners insurance are the same on both loan types, so the comparison comes down to principal, interest, mortgage insurance, and the funding fee. Our VA loan calculator handles the funding fee automatically, and we will run a written side-by-side on your actual scenario before you commit to either path.