VA vs FHA Loans: How to Compare
Published · Last reviewed
Educational comparison only. Not a quote, recommendation, or offer of credit.
VA Loan vs FHA Loan: side by side
| VA Loan | FHA Loan | |
|---|---|---|
| Who can use it | Eligible veterans, active duty, and certain surviving spouses with a Certificate of Eligibility | Almost any borrower who meets credit and income guidelines |
| Minimum down payment | 0% for most eligible borrowers | 3.5% with a qualifying credit score |
| Monthly mortgage insurance | None | Annual MIP, often for the life of the loan |
| Upfront cost | One-time VA funding fee, which can be financed; waived for some disabled veterans | Upfront mortgage insurance premium, which can be financed |
| Typical minimum credit score | No VA-set floor; most lenders look for around 580 to 620 | 580 for 3.5% down, lower with more down at some lenders |
| Loan limits | No VA loan limit for borrowers with full entitlement | FHA limits set by county |
| Property rules | VA minimum property requirements and a VA appraisal apply | FHA minimum property standards and an FHA appraisal apply |
| Occupancy | Must be a primary residence | Must be a primary residence |
When each option tends to make more sense
When va loan tends to fit
When borrowers gravitate toward VA
- The borrower is eligible and wants to buy with little or no money down
- Avoiding monthly mortgage insurance is a priority for cash flow
- The funding fee is waived because of a service-connected disability
- The borrower wants no loan limit with full entitlement
When fha loan tends to fit
When borrowers gravitate toward FHA
- The borrower is not VA eligible, which makes FHA the low-down-payment path
- Credit is still being rebuilt and FHA pricing is forgiving
- The buyer wants a condo or a small multi-unit primary residence
- A small down payment is available and VA entitlement is not
Run the numbers
- Affordability Calculator
See what monthly payment a price point implies under each program.
- Mortgage Payment Calculator
Compare principal, interest, taxes, and insurance side by side.
- DTI Calculator
Check how the proposed payment stacks up against income.
- Can I Qualify?
Walk through eligibility questions for each program.
Frequently asked questions
Is a VA loan better than an FHA loan?
Does VA have mortgage insurance like FHA?
Can I switch from an FHA loan to a VA loan later?
Which loan is easier to qualify for?
Can a non-veteran use a VA loan?
Other decision guides
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