VA vs Conventional Loan

Introduction

VA vs conventional: VA loans offer zero down and no PMI for eligible veterans and service members. Conventional requires a down payment and PMI when LTV exceeds 80%. VA has a funding fee; conventional has no funding fee. See What Is a VA Loan, What Is a Conventional Loan, and What Is PMI.

Frequently Asked Questions

What is the main difference?

VA loans offer zero down payment and no PMI for eligible veterans and service members. Conventional typically requires a down payment and PMI if LTV exceeds 80%.

Does VA have a funding fee?

Yes. VA charges a funding fee (can be financed) unless you are exempt (e.g., disability). The fee helps fund the program. No monthly mortgage insurance.

Who qualifies for VA?

Active duty, veterans, and certain spouses. You need a Certificate of Eligibility (COE). Service requirements apply.

When is VA better?

VA is often better for eligible borrowers who want zero down and no PMI. Conventional may be better if you have a down payment and want to avoid the funding fee.