Choosing the right mortgage depends on your service history, credit profile, down payment, and long-term goals. Here’s a direct comparison of VA, FHA, and conventional loans so you can make an informed decision.

Side-by-Side Comparison

Feature	VA Loan	FHA Loan	Conventional
Who it’s for	Veterans, active-duty, eligible spouses	Most borrowers	Most borrowers
Minimum down payment	0%	3.5%	3%–5%+
Monthly mortgage insurance	None — ever	Required, often for life of loan	Required below 20% down; removable at 20%
Upfront fee	VA Funding Fee (waived for disabled vets)	1.75% Upfront MIP	None
Loan limits	No limit with full entitlement	County-based limits	Conforming and high-balance limits apply
Minimum credit score	580 (lender overlay)	500–580+	620+
Investment properties	Not allowed	Not allowed	Allowed
Seller concessions	Up to 4% of value	Up to 6%	Up to 3–9% depending on LTV

When the VA Loan Wins

For eligible veterans, the VA loan is almost always the best choice. No monthly mortgage insurance saves hundreds of dollars per month compared to FHA or low-down-payment conventional. Combined with zero down and no loan limit for full entitlement holders, VA financing provides purchasing power that no other standard program can match in high-cost California markets.

When FHA Might Be Considered

FHA is rarely a better choice than VA for eligible veterans. It may come into play for credit scores below 580, or when a property doesn’t meet VA Minimum Property Requirements but does meet FHA standards.

When Conventional Makes Sense

Conventional loans make sense for purchasing investment properties (VA requires owner-occupancy), when VA entitlement is fully tied up, or for veterans with 20%+ equity and strong credit where no MI is required and conventional pricing is competitive.

Want to Compare Options for Your Situation?

At Lendia, we’ll run VA vs. FHA vs. conventional side by side and show you the real monthly payment difference. Get a free quote to start.