FHA loans are open to any qualifying borrower with a minimum 3.5% down payment plus ongoing mortgage insurance. VA loans are limited to eligible veterans, active-duty service members, and certain surviving spouses, offering 0% down with no monthly mortgage insurance — instead charging a one-time funding fee of 1.25% to 3.3%, often waived for disabled veterans.
FHA requires a minimum 3.5% down payment. VA offers 0% down for eligible borrowers — no down payment requirement at all.
FHA charges 1.75% upfront plus 0.15%-0.75% annually, often for the life of the loan. VA has no monthly mortgage insurance, ever.
VA charges a one-time funding fee of 1.25%-3.3% of the loan amount, often financed into the loan. Many disabled veterans are fully exempt.
FHA is open to any qualifying borrower. VA is restricted to veterans, active-duty service members, and certain surviving spouses with a Certificate of Eligibility.
For eligible veterans, VA's combination of 0% down and no monthly mortgage insurance typically outperforms FHA on total cost.
FHA remains one of the most accessible paths to homeownership for borrowers with lower credit scores or limited down payment savings.
The right answer depends on your specific credit, down payment, and how long you plan to keep the loan.
See how FHA stacks up against a standard conventional loan instead.
Compare FHA vs. Conventional →Private consultation with Kelly or Ray Nadeau. We'll compare FHA and VA (if eligible) side by side for your specific scenario — no obligation.
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