VA Loan vs FHA Loan in San Antonio
The Short Answer
For a buyer in San Antonio who is eligible for both, a VA loan is almost always cheaper than an FHA loan. VA requires zero down payment and charges no monthly mortgage insurance, while FHA requires at least 3.5% down and charges both an upfront mortgage insurance premium and an annual premium that, on most FHA loans today, stays for the life of the loan. FHA only makes sense if you are not VA-eligible, or if you have already used your entitlement and cannot restore it.
VA Loan vs FHA Loan, Side by Side
Program rules only. We do not post rates, because they change daily.
| Criterion | VA Loan | FHA Loan |
|---|---|---|
| Minimum down payment | $0 with full entitlement | 3.5% with a 580+ score, 10% below 580 |
| Monthly mortgage insurance | None, ever | Annual MIP, typically for the life of the loan when you put less than 10% down |
| Upfront fee | VA funding fee, financeable, waived if you receive VA disability compensation | 1.75% upfront MIP, financeable, no exemptions |
| Who can use it | Eligible veterans, active duty, Guard/Reserve, and some surviving spouses | Anyone who qualifies |
| Loan limit | No limit with full entitlement | Capped at the FHA limit for Bexar County |
| Credit flexibility | No VA-set minimum score; we work down to a 500 FICO | 580 for 3.5% down, 500 for 10% down |
| Property standards | VA appraisal with minimum property requirements | FHA appraisal with comparable HUD standards |
| Seller-paid closing costs | Seller may pay all closing costs plus up to 4% in concessions | Seller may contribute up to 6% |
| Second home or investment | Primary residence only | Primary residence only |
| Refinance path later | IRRRL streamline with minimal documentation | FHA streamline refinance |
When a FHA 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 FHA loan wins:
You are not eligible for a VA loan, or you are buying with a non-veteran partner whose income and credit have to carry the file.
Your entitlement is fully tied up in an existing VA loan you are keeping and you cannot make the required down payment on a second VA loan.
You need the higher 6% seller concession cap to structure a specific deal.
What This Means Around JBSA
This comparison matters more in San Antonio than in most markets because so many buyers here are dual-eligible: active duty at JBSA, retirees, and DoD civilians married to veterans. We see FHA loans written for people who qualified for VA the whole time — usually because their lender was not VA-focused. If you have any service history at all, get your Certificate of Eligibility checked before you sign an FHA disclosure.
VA vs FHA Questions
Quick Answer
If you are VA-eligible, yes, in nearly every case. VA requires no down payment and no monthly mortgage insurance, while FHA requires 3.5% down plus both upfront and annual mortgage insurance premiums. Over a typical holding period that difference is substantial. FHA is the better answer only when you are not VA-eligible or your entitlement is unavailable.
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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