A rule-by-rule comparison plus a live payment calculator that weighs the VA funding fee — with no monthly mortgage insurance — against credit-score-priced private mortgage insurance and FHA's upfront and lifetime MIP.
No-obligation VA pre-qualification review.
VA loans beat conventional on cost for nearly every eligible veteran: $0 down, no mortgage insurance ever, and often a lower rate. Conventional requires at least 3% down and PMI until 20% equity (or a higher score to avoid it). The only real VA cost is a one-time funding fee, which is waived for disabled veterans.
For nearly every eligible veteran, VA wins on total cost because there's no monthly mortgage insurance to add to the payment.
Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 24, 2026 against the VA Lenders Handbook (M26-7)
Compare both paymentsEnter your scenario to see live wholesale VA pricing available to Simply Approved Mortgages for Florida and Colorado primary residences. Every figure shown comes from our pricing provider for the scenario you enter — nothing is estimated.
Pricing shown is based on the scenario entered and wholesale pricing available at the time of the search. It is not a rate lock, loan approval, commitment to lend, or guarantee of terms. Rates and pricing change frequently and expire. Your actual rate, APR, payment, and costs depend on a complete application, verified credit and income, property and appraisal review, and lender underwriting approval. Binding figures appear on your Loan Estimate.
Simply Approved Mortgages LLC is not affiliated with, acting on behalf of, or endorsed by the U.S. Department of Veterans Affairs (VA) or any other government agency.
Simply Approved Mortgages LLC | NMLS #2620881 is a mortgage broker and is not a direct lender. Equal Housing Opportunity.
Same home, three loan types. Adjust the inputs to match your quote.
Principal, interest & mortgage insurance/funding fee amortization only
Principal, interest & mortgage insurance/funding fee amortization only
Principal, interest & mortgage insurance/funding fee amortization only
Taxes, homeowner's insurance and HOA dues are identical across all three and are excluded here. PMI and FHA MIP figures are representative rates; your actual rate comes from the mortgage insurer or FHA schedule at underwriting. The VA funding fee shown is first-use, purchase pricing — many veterans with a service-connected disability rating pay $0. Not a quote or offer of credit.
| VA loan | Conventional loan | FHA loan | |
|---|---|---|---|
| Minimum credit score | No VA-set minimum; lender overlays commonly 580–620 | 620 typical for Fannie Mae / Freddie Mac | 580 with 3.5% down; 500 with 10% down |
| Minimum down payment | $0 with full entitlement | 3% on first-time buyer programs; 5% standard | 3.5% (10% below a 580 FICO) |
| Mortgage insurance | None — ever | PMI above 80% LTV; cancellable, no upfront premium | 1.75% upfront MIP + annual MIP, usually for the life of the loan |
| Can insurance be cancelled? | N/A — there is none to cancel | Yes — automatically at 78% LTV, on request at 80% | Only by refinancing out of FHA in most cases (10%+ down loans drop MIP after 11 years) |
| Underwriting benchmark | 41% DTI guideline; residual income can offset a higher ratio | 36% typical, up to 45–50% with strong reserves | 43% typical, higher with compensating factors |
| Loan limit | No VA limit with full entitlement; $832,750 baseline applies only to reduced entitlement | $832,750 baseline conforming limit | Set annually by county, generally below the conforming limit |
| Seller contributions | Up to 4% of reasonable value, plus customary closing costs | 3% under 10% down; 6% at 10–25% down | Up to 6% of the sale price |
| Gift funds | 100% of any down payment or closing costs may be gifted | Allowed, with occupancy and source conditions | 100% may be gifted from an eligible donor |
| Property standards | VA Minimum Property Requirements (MPRs) apply | Appraisal only; fewer condition requirements | FHA Minimum Property Standards apply |
| Assumable by a future buyer | Yes, with lender qualification | No | Yes, with lender qualification |
| Occupancy | Primary residence only | Primary, second home, or investment | Primary residence only |
| Origination fee cap | 1% of the loan amount | No VA-style cap | No VA-style cap |
| Streamline refinance | Yes — an IRRRL may not require a new appraisal or traditional income review, subject to lender requirements | No equivalent; full refinance required | Yes — FHA Streamline Refinance |
If you have VA eligibility, the loan usually costs less than conventional or FHA over any realistic holding period, because it is the only one of the three with no monthly mortgage insurance at any down payment. The only real trade-off is the one-time funding fee, and it disappears entirely for veterans receiving VA disability compensation.
A veteran who bought with an FHA or conventional loan before establishing VA eligibility, or before locating their COE, can use a VA cash-out refinance to move into a VA loan and eliminate mortgage insurance for good — one of the only ways to convert a non-VA loan into a VA loan.
For most eligible veterans, yes on cost: VA requires no down payment and never charges monthly mortgage insurance, while conventional loans need at least 3% down and PMI below 20% equity. Conventional can still win for a veteran with a large down payment and a very strong credit score, where the loan-level pricing is cheap and PMI cancels quickly.
Almost always, for anyone eligible. FHA requires 3.5% down and charges a 1.75% upfront mortgage insurance premium plus mortgage insurance that lasts the life of most FHA loans. VA requires no down payment and never charges monthly mortgage insurance — only a one-time funding fee that many veterans are exempt from entirely.
The VA sets no minimum credit score at all — lenders set their own overlay, commonly 580–620. FHA allows a 580 score with 3.5% down, or 500 with 10% down. Conventional loans backed by Fannie Mae or Freddie Mac generally require a 620 minimum, with pricing improving sharply above 740.
Yes. Entitlement is restored once a prior VA loan is paid off and the home is sold, and a one-time restoration is available even if you keep the home. Veterans can also have more than one VA loan at a time using remaining entitlement, which is common on a PCS move.
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SAM is the Simply Approved Mortgages AI assistant, grounded in the VA Lenders Handbook M26-7, 38 CFR Part 36 and the county loan-limit file behind this page. It answers general VA questions. A licensed mortgage loan originator reviews every scenario before any terms are confirmed.
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AI assistant — general VA loan education only, not financial, legal or tax advice, not a loan approval, pre-approval or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) is an independent mortgage broker and is not the VA, HUD or any government agency, and is not endorsed by them. All loans are subject to lender underwriting, appraisal and final approval. Equal Housing Opportunity.
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VA loans need $0 down and no mortgage insurance, ever. Conventional loans require at least 3% down and PMI until 20% equity. Here's when each one wins.
The VA funding fee schedule sets the one-time cost that replaces mortgage insurance on every VA loan. Here's the current chart, who's exempt, and how it's financed.
A VA loan can finance up to a 4-unit property with $0 down, as long as you live in one unit. Rent from the other units can even help you qualify.
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