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VA Loan vs. Conventional Loan: What's the Difference?
Side-by-side look at down payment, mortgage insurance, rates, and when each makes sense.
If you're eligible for a VA loan, it's almost always worth comparing against a conventional loan before deciding — the two work very differently, and the VA loan's advantages are substantial for most eligible borrowers.
Where VA loans generally win
- Down payment: often $0 down, versus 3%+ for conventional
- Mortgage insurance: none, ever — conventional loans require PMI below 20% down
- Credit flexibility: VA guidelines are often more forgiving than conventional guidelines
- Rates: VA rates are frequently competitive with, or better than, conventional rates
Trade-offs to know
- The VA funding fee (conventional loans have no equivalent one-time fee, though they may have PMI instead)
- VA loans are for a primary residence — not investment properties
- Some sellers mistakenly believe VA loans are harder to close; in practice, they close at similar rates to conventional loans
Want a side-by-side comparison using your real numbers?
Every situation is different, and these are general guidelines — the fastest way to know where you stand is a quick conversation. Send us a message or visit our team page to apply directly.