Federal Housing Administration (FHA) loans are government-backed mortgages designed to help first-ti
VA loans are a benefit earned by veterans, active-duty service members, and eligible surviving spous
FHA vs VA Loans: Which Government Loan Is Right for You?
Both are government-backed loans with lenient requirements, but VA loans offer unique benefits for those who qualify.
At a Glance
Quick comparison of key requirements
Feature-by-Feature Comparison
See how FHA Loans and VA Loans stack up
| Feature | FHA Loans | VA Loans |
|---|---|---|
| Down Payment | 3.5% | 0% |
| Mortgage Insurance | MIP (lifetime) | No MI (funding fee once) |
| Credit Score | 580+ | 580-620 (lender dependent) |
| Eligibility | Anyone | Veterans/military only |
| Loan Limits | $498,257 | No limit (full entitlement) |
| Interest Rates | Low (government-backed) | Lowest available |
Which Loan Is Right for You?
Each loan type has ideal scenarios
The Bottom Line
If you are eligible for a VA loan, it is almost always the better choice over FHA. Zero down payment and no ongoing mortgage insurance make VA loans significantly cheaper over time. FHA is an excellent alternative for non-military buyers who need flexible credit requirements.
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Frequently Asked Questions
Common questions about FHA Loans vs VA Loans
Frequently Asked Questions
VA loans are available to veterans, active duty service members, National Guard/Reserve members with qualifying service, and surviving spouses of veterans who died in service or from a service-connected disability.
Yes, veterans can use FHA loans, but VA loans typically offer better terms. The main reason a veteran might choose FHA is if they have used their VA entitlement or the property does not meet VA requirements.
This comparison is for informational purposes only and does not constitute financial advice. Rates, terms, and program availability are subject to change without notice and may vary based on creditworthiness, property type, loan amount, and other factors. Contact NMHL for current rates and personalized loan options. NMHL NMLS# 2557591. Equal Housing Lender.