Compare With Confidence
For eligible military borrowers, the VA loan program delivers unmatched advantages: $0 down with full entitlement, no PMI, generally lower average interest rates, the ability to finance jumbo price points with full entitlement, and more flexible debt‑to‑income allowances compared with conventional and FHA options.
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Side By Side
VA Loans Best Value | Conventional Loans | FHA Loans |
|---|---|---|
0% Down* With sufficient entitlement, qualified borrowers can buy with no down payment. | 3%–20% Down A down payment is always required; best pricing typically favors 20% down. | 3.5% Minimum Down FHA loans always require a down payment. |
No PMI No private mortgage insurance—even with $0 down. Funding fee may apply unless exempt. | PMI Required Unless 20% down, PMI generally applies. | Upfront & Annual MIP Both an upfront and ongoing annual mortgage insurance premium. |
Competitive/Lower Average Rates VA rates are typically lower than FHA and conventional. | Credit‑Sensitive Pricing Best rates usually require top‑tier credit and larger down payments. | Mid‑Range Often lower than conventional, but generally higher than VA on average. |
Lower Origination Costs Median VA origination charges trend lower vs. other options. | Moderate Costs Conventional fees are commonly higher than VA. | Higher Costs FHA charges frequently land at the high end among the three. |
More Flexible Qualification Allows higher DTI thresholds and Veteran‑friendly underwriting. | Stricter Guidelines Higher credit scores and tighter DTI caps are common. | Moderate Flexibility More flexible than conventional, but not as forgiving as VA. |
Jumbo Eligibility with Full Entitlement No loan limit when full entitlement is available; subject to lender approval. | Jumbo Available with Down Payment Requires larger down payments and stricter guidelines. | No FHA Jumbo FHA is limited by county ceilings and does not offer true jumbo financing. |
Reusable Benefit Can use multiple times throughout life as entitlement is restored. | N/A Standard conventional loans have no reusability benefit. | N/A FHA has no special reusability benefit. |
Assumable Loans Buyers can take over your VA loan, potentially a selling advantage. | Rarely Assumable Most conventional loans are not assumable. | Assumable FHA loans can be assumed with qualification. |
Up to 4% in Seller Concessions Seller may cover all standard closing costs (no cap) — including attorney, title, and government fees — plus up to 4% toward buyer concessions such as debt payoff, prepaid taxes or insurance, or the VA funding fee. Discount points are not included in the 4% limit. | Typically 3–9% Allowed Seller concession limits vary by down payment — 3% with low down payments, up to 9% with 25%+ down. | Up to 6% Maximum Seller may contribute up to 6% toward closing costs, prepaid items, and discount points. |
No Prepayment Penalty Pay off your loan early without any fees or penalties. | Usually None Most modern conventional loans have no prepayment penalty. | No Penalty FHA loans allow prepayment without penalty. |
Streamline Refinancing (IRRRL) Simplified refinancing process with reduced documentation. | Standard Refinance Traditional refinancing with full documentation and appraisal. | FHA Streamline FHA offers streamline refinancing for existing FHA borrowers. |
Military Exclusive Disability Exemptions VA funding fee waived for veterans with service-connected disabilities. | N/A No disability-related exemptions available. | N/A No disability-related exemptions available. |
*Eligibility and lender approval required. VA funding fee may apply unless exempt.
Compare your monthly payments and lifetime savings with a VA loan versus Conventional and FHA loans. Adjust the numbers to see how much you could save.
Principal & Interest
Taxes & Insurance (Escrow)
30-Year Total (P&I only)
$905,961
Principal & Interest
Taxes & Insurance (Escrow)
30-Year Total (P&I only)
$887,282
Pay $106/mo more
$38,321 over 30 years
Principal & Interest
Taxes & Insurance (Escrow)
30-Year Total (P&I only)
$893,692
Pay $143/mo more
$51,421 over 30 years
Monthly Savings Range
$106.45 - $142.84
per month vs Conventional and FHA loans
Total Lifetime Savings
$51,421
*Rates and calculations are estimates for comparison purposes only. Actual rates may vary based on individual circumstances, market conditions, and lender requirements. VA funding fee may be waived for veterans with service-connected disabilities.
Clear Advantage
With full entitlement, VA loans have no loan limits. That means eligible borrowers can finance homes above local conforming limits without a down payment, subject to lender guidelines.
VA loans do not require private mortgage insurance. That's a built‑in monthly savings compared with conventional and FHA (which has upfront and annual MIP).
VA underwriting can allow higher debt‑to‑income ratios, helping more Veterans qualify while keeping payments sustainable based on residual income standards.
Historically, VA rates trend lower than conventional and FHA, which can reduce monthly payments and lifetime interest costs.
Common Questions
Qualified borrowers with full entitlement can buy with 0% down. Some choose to put money down to lower payments.
No. VA loans do not require PMI. A VA funding fee may apply unless exempt.
Yes. With full entitlement, there's no VA loan limit. The amount you can borrow depends on lender approval and your qualifications.
VA loans typically offer lower average interest rates than both conventional and FHA mortgages, helping reduce monthly and lifetime costs.
VA guidelines are more flexible and incorporate residual income requirements, allowing higher DTI in many cases compared with conventional and FHA.
What's Next
Understanding your options is the first step. The next is seeing your numbers. Get a personalized quote with current rates and costs—no commitment. Also check out our free resources and meet our team.