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.
Not Sure Which Is Right for You?
Talk to an advisor who can compare both options based on your specific situation.
All loans are subject to borrower qualification, underwriting approval, and program guidelines.