VA vs Conventional
VA often shines with no down payment and no monthly mortgage insurance. Conventional may compete when you are putting significant money down and have very strong credit.
Loan Types & Strategies
VA Home Loans – A Powerful Benefit for Those Who Served
VA loans are one of the strongest tools available to eligible Veterans, active-duty service members and some surviving spouses, often allowing no down payment and no monthly mortgage insurance.
What is a VA Loan?
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs. The VA provides a guaranty to the lender, which allows more favorable terms for eligible borrowers, including:
- Zero-down options in many situations
- No monthly mortgage insurance
- Flexible guidelines for credit and DTI compared with many programs
Basic Eligibility & Requirements
Service-Related Eligibility
Eligibility is based on length and character of service, duty status, and other factors. We confirm this through your Certificate of Eligibility (COE).
Credit & Income
- VA is often more flexible with past credit issues than conventional loans
- DTI guidelines can allow higher ratios with strong overall files
- Stable income and a reasonable history are still required
VA Funding Fee
- Most VA loans include a one-time funding fee
- The fee can usually be financed into the loan amount
- Certain Veterans with service-connected disability may be exempt
Pros & Cons of VA Loans
Major Advantages
No monthly mortgage insurance is a huge advantage compared to many low-down options.
- Zero-down possible for many eligible buyers
- Competitive rates and flexible credit compared with many programs
- Can be used multiple times in your life, subject to entitlement
Things to Keep in Mind
The funding fee and rules about occupancy and use are important to understand.
- Generally intended for primary residences (not typical for second homes / investments)
- Funding fee can add to the balance if financed
- There are limits to how much entitlement can be used at one time
When VA May Not Be Optimal
- If a seller strongly prefers conventional financing in a competitive situation
- If you have very high down payment and exceptional credit, conventional or jumbo might be slightly cheaper in some scenarios
- We compare options instead of assuming one is always best
VA vs Other Loan Types
VA vs FHA
For eligible borrowers, VA frequently provides lower monthly cost than FHA because there is no monthly mortgage insurance and guidelines can be more flexible.
VA vs Jumbo
At higher price ranges, we sometimes compare a VA loan against jumbo options or a combination structure when entitlement and local limits allow.
Build Your VA Homeownership Plan
If you have served or are currently serving, you have earned these benefits. The key is to line them up with your budget, family needs and long-term goals.
- Confirm eligibility and entitlement
- Review credit, income and debts
- Compare VA vs conventional & FHA where appropriate