Comparison
VA vs Conventional Loans
Zero-down VA benefits vs flexible conventional financing — which is right for you?
Overview
VA loans offer unmatched benefits for eligible veterans — zero down and no mortgage insurance. But conventional loans provide more flexibility for property types and don't require a funding fee. The right choice depends on your eligibility, down payment, and goals.
Side-by-Side Comparison
| Feature | VA Loans | Conventional Loans |
|---|---|---|
| Min Down Payment | $0 (zero down) | 3-5% (primary), 10-25% (inv) |
| Mortgage Insurance | None | PMI if less than 20% down |
| Funding Fee | 1.25–3.3% (waivable) | None |
| Interest Rates | Often among the most competitive | Competitive for 700+ credit |
| Credit Requirements | No VA minimum (lender requirements vary) | 620+ (stronger credit improves pricing) |
| Property Types | Primary residence only | Primary, second home, investment |
| Eligibility | Veterans, active duty, reserves, spouses | Anyone who qualifies |
| Seller Concessions | Up to 4% | Up to 3-6% |
Choose VA Loans If…
- You have VA eligibility
- You want zero down payment
- You want to avoid monthly mortgage insurance
- You want the lowest possible interest rate
Choose Conventional Loans If…
- You're buying a second home or investment property
- You want to avoid the VA funding fee
- You don't have VA eligibility
- You have 20%+ down and want to avoid all fees
The Bottom Line
For eligible veterans, VA loans are often the stronger choice for primary residence purchases — zero down, no PMI, and competitive rates. Conventional is typically the better option when buying non-primary properties or when the VA funding fee outweighs the PMI savings.
Common Questions
Yes. You can have a VA loan on your primary residence and use conventional financing for a second home or investment property.