Down payment and insurance
VA loans may not require a down payment and generally do not require PMI for eligible borrowers. Conventional loans typically require some down payment and may require PMI when the down payment is under 20%.
Up-front cost vs. ongoing cost
VA loans usually carry a one-time funding fee. Conventional loans often have ongoing PMI when applicable, which can be canceled in many cases once equity reaches a defined threshold.
Comparing the up-front fee against years of potential PMI can help reveal which structure may cost less over your expected ownership period.
Property and program rules
Both loan types follow specific property and underwriting rules. VA loans have appraisal and Minimum Property Requirement standards; conventional loans follow the requirements of the loan program selected.
- VA loans often allow no down payment and no PMI; conventional loans don't.
- VA's funding fee vs. conventional PMI is the core trade-off to weigh.
- Both follow specific property and underwriting rules.
Ready to explore your options?
Answer a few simple questions and review home loan paths that may fit your goals.
Get started