VA Loan vs Conventional Loan in San Antonio
The Short Answer
For an eligible San Antonio buyer, a VA loan usually beats a conventional loan because it requires zero down payment and charges no monthly private mortgage insurance at any loan-to-value. A conventional loan requires at least 3% to 5% down and adds PMI until you reach 20% equity. Conventional wins in narrow cases: buying a second home or investment property, buying a condo in a project that is not VA-approved, or when you are putting 20% or more down and want to avoid the VA funding fee.
VA Loan vs Conventional Loan, Side by Side
Program rules only. We do not post rates, because they change daily.
| Criterion | VA Loan | Conventional Loan |
|---|---|---|
| Minimum down payment | $0 with full entitlement | 3% for some first-time buyer programs, commonly 5% |
| Mortgage insurance | None at any loan-to-value | PMI required under 20% equity, cancellable once you reach it |
| Upfront fee | VA funding fee, financeable, waived with VA disability compensation | None |
| Typical credit minimum | No VA-set minimum; we work down to a 500 FICO | Generally 620 and up, with pricing that worsens quickly below 700 |
| Loan limit | No limit with full entitlement | Conforming limit, above which it becomes a jumbo loan |
| Occupancy allowed | Primary residence only | Primary, second home, or investment property |
| Condos | Project must be on the VA-approved list | Broader project eligibility |
| Assumable by a future buyer | Yes, by a qualified buyer | No |
| Seller concessions | Seller may pay all closing costs plus up to 4% | Capped by down payment, commonly 3% at low down payments |
| Appraisal | VA appraisal with minimum property requirements | Standard appraisal, fewer condition requirements |
When a Conventional Loan Is Actually the Better Choice
We are a VA-focused lender, and we still tell people to take the other program when it fits better. Here is when a conventional loan wins:
You are buying a second home, a rental, or an investment property — VA is primary residence only.
You want a condo in a project that is not on the VA-approved list.
You are putting 20% or more down, where there is no PMI on conventional and the VA funding fee becomes the only extra cost.
You are competing on a property in rough condition where the VA appraisal's minimum property requirements would be a problem.
What This Means Around JBSA
The assumability line matters in San Antonio specifically. A VA loan can be assumed by a qualified buyer, and in a market with constant PCS turnover, a low-rate assumable loan is a genuine selling point when you get orders in three years. Conventional loans offer nothing comparable. The other local factor is Stone Oak and Boerne pricing — with full entitlement a VA loan has no limit, so you are not pushed into jumbo underwriting the way a conventional buyer is.
VA vs Conventional Questions
Quick Answer
For an eligible buyer purchasing a primary residence, usually yes. Zero down payment and no monthly PMI are hard to beat, and with full entitlement there is no loan limit. Conventional makes more sense for a second home or investment property, a non-VA-approved condo, or a buyer putting 20% or more down.
Not Sure Which Program Fits?
We run both side by side with your actual numbers, then tell you which one costs less.
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