Side-by-Side Comparison
VA vs Conventional for Veterans
VA loans are one of the most powerful benefits available to eligible veterans, but conventional loans can also be competitive for veterans with strong credit and a down payment. Here is how they compare.
Feature Comparison
| Feature | VA Loan | Conventional Loan |
|---|---|---|
| Eligibility | Veterans, active-duty, surviving spouses | Any qualified borrower |
| Min Down Payment | 0% | 3–5% |
| PMI / Mortgage Insurance | None | PMI if < 20% down (cancellable) |
| VA Funding Fee | 0.5–3.3% (waived for disabled vets) | None |
| Min Credit Score | 620+ for 0% down (below 620: 10% down) | 620+ |
| Property Type | Primary residence only | Primary, second home, investment |
| Max DTI | Flexible; 41% guideline (exceptions allowed) | Typically ≤ 45% |
| Loan Limit | None from VA with full entitlement; our VA loans run $75,000 to $5,000,000 | The conforming limit FHFA sets for your county |
| Appraisal | VA appraisal required (MPR standards) | Standard appraisal |
Eligibility
VA Loan
Veterans, active-duty, surviving spouses
Conventional Loan
Any qualified borrower
Min Down Payment
VA Loan
0%
Conventional Loan
3–5%
PMI / Mortgage Insurance
VA Loan
None
Conventional Loan
PMI if < 20% down (cancellable)
VA Funding Fee
VA Loan
0.5–3.3% (waived for disabled vets)
Conventional Loan
None
Min Credit Score
VA Loan
620+ for 0% down (below 620: 10% down)
Conventional Loan
620+
Property Type
VA Loan
Primary residence only
Conventional Loan
Primary, second home, investment
Max DTI
VA Loan
Flexible; 41% guideline (exceptions allowed)
Conventional Loan
Typically ≤ 45%
Loan Limit
VA Loan
None from VA with full entitlement; our VA loans run $75,000 to $5,000,000
Conventional Loan
The conforming limit FHFA sets for your county
Appraisal
VA Loan
VA appraisal required (MPR standards)
Conventional Loan
Standard appraisal
Which Is Right for You?
Choose VA Loan If...
Eligible veterans who want zero down payment and no PMI. For a home you live in, the VA loan is almost always the stronger choice.
Choose Conventional Loan If...
Veterans purchasing a second home or investment property, or those who want to preserve VA entitlement for a future purchase.
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