VA loans are a benefit earned by veterans, active-duty service members, and eligible surviving spous
Conventional loans are not backed by government agencies and typically offer the most flexibility fo
VA vs Conventional Loans: Which Should Veterans Choose?
Compare VA and conventional loans to see which offers veterans and service members the best deal on their next home.
At a Glance
Quick comparison of key requirements
Feature-by-Feature Comparison
See how VA Loans and Conventional Loans stack up
| Feature | VA Loans | Conventional Loans |
|---|---|---|
| Eligibility | Veterans, active duty, spouses | Anyone who qualifies |
| Down Payment | 0% (no down payment) | 3-20% |
| Mortgage Insurance | None (funding fee instead) | PMI if <20% down |
| Credit Score | No VA minimum (lenders: 580-620) | 620+ |
| Loan Limits | No limit with full entitlement | $766,550 (2024) |
| Interest Rates | Typically 0.25-0.5% lower | Market rate |
| Closing Costs | Seller can pay all | Seller can pay up to 3-6% |
| Occupancy | Primary residence | Primary, second, investment |
Which Loan Is Right for You?
Each loan type has ideal scenarios
The Bottom Line
For eligible veterans and service members, VA loans are almost always the better choice. Zero down payment, no mortgage insurance, and lower rates make VA loans one of the best mortgage products available. The only scenario where conventional might win is if you have 20% down and want to avoid the VA funding fee.
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Frequently Asked Questions
Common questions about VA Loans vs Conventional Loans
Frequently Asked Questions
Usually yes. The one-time VA funding fee (1.25-3.3%) replaces ongoing mortgage insurance, saving thousands over the life of the loan compared to PMI.
Yes, VA loan entitlement can be reused. You can have multiple VA loans simultaneously if you have remaining entitlement.
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.