Finance · 7 min read

VA Loan vs Conventional Mortgage

**VA loans** offer 0% down for eligible veterans with a one-time **funding fee** (waivable for some disability ratings). **Conventional** loans favor strong credit and 3–20% down with PMI below 20% equity.

Step by step

1. Confirm eligibility

Certificate of Eligibility and occupancy rules.

2. Add funding fee

Roll into loan or pay upfront—changes total cost.

3. Compare monthly PITI

VA often wins on cash to close; rate spread varies by lender.

VA vs conventional

VA is a strong option for eligible buyers; conventional may win on jumbo or investment properties.

  • VA: No PMI; flexible DTI; funding fee; primary residence.
  • Conventional: Broader property types; PMI or 20% down; stricter on second homes.

Common mistakes

  • Skipping funding fee in comparisons
  • Using VA on ineligible investment property

FAQ

Can VA loans be used twice?

Yes with remaining entitlement—check COE for county limits.