Conventional Loan vs. VA Loan
When comparing a VA loan to a conventional loan, there’s a clear winner. The VA loan allows you to buy more home for less money. If you are VA eligible, you have an advantage over the average homebuyer. Here’s how a VA loan stacks up against a conventional loan:
Conventional Loan vs. VA Loan
| VA Loan | Conventional Loan |
| No Down Payment Required | Typically at least 5% down is required |
| No monthly mortgage insurance | Mortgage insurance can be hundreds of dollars per month |
| Lenient credit guidelines | Typically only for those with excellent credit |
| Limitation on which closing costs the veteran can pay | Borrower pays full closing costs |
| Great interest rates | Interest rates typically higher than VA |
| Loan may be assumable by a subsequent buyer | Loan is rarely assumable |
| Loan may be used to build or rehab a home | Loan can’t be used for construction or rehab |
| Seller can pay all closing costs | Seller can only pay closing costs up to 3% of the purchase price for low-down payment loans |
VA, FHA, USDA, or Conventional?
As an eligible veteran you are entitled to a VA loan, which is a better choice than FHA, USDA or Conventional in most cases. See our VA loan benefits page for a comparison of these loan types.
The VA Home Loan is the clear winner
These and many other major advantages are extended to our nation’s finest for their faithful service. In recognition of your loyalty and to honor your unselfish sacrifices, VA home loans represent a hefty token of appreciation from your government. If you are an eligible veteran, accept your exclusive invitation to attain the American Dream today. Call (866) 240-3742 or complete our simple contact request form.
Other helpful VA loan information
- VA loan FAQ
- Benefits of VA loan
- VA loan checklist
- Energy efficient home improvements
- VA certificate of eligibility
- Home equity loans
- Military pay chart
