FHA vs. VA Loans
If you have military service, the VA loan is almost always the better choice over FHA. Here's the detailed comparison showing why.
| Feature | FHA Loans | VA Loans |
|---|---|---|
| Down Payment | 3.5% minimum | Zero — 100% financing |
| Mortgage Insurance | 1.75% upfront + 0.55%/yr for life | No PMI ever. Funding fee 1.25–3.3% (waived for disabled vets) |
| Credit Score | 580+ (500 with 10% down) | No VA minimum, lenders typically require 620+ |
| Loan Limits | $1,209,750 CA high-cost | No limit with full entitlement |
| Interest Rates | Competitive | Typically 0.25–0.50% lower than FHA |
| Occupancy | Primary residence only | Primary residence only |
| Eligibility | Anyone | Active duty, veterans, National Guard, surviving spouses |
| Assumable | Yes | Yes |
| Closing Cost Limits | Standard | VA limits certain fees, seller can pay up to 4% |
Best For: FHA Loans
Non-military buyers who need flexible credit requirements and a low down payment option.
Learn More About FHA Loans →Best For: VA Loans
Any eligible veteran or active-duty service member. Zero down, no PMI, and lower rates make VA the best mortgage product available.
Learn More About VA Loans →The Bottom Line
If you qualify for VA, there is almost no scenario where FHA is the better choice. The zero down payment, no mortgage insurance, and lower rates save California veterans tens of thousands over the life of the loan. Save Financial's VA specialist Amanda Foster helps military families across all California installations.
Not Sure Which Is Right for You?
Save Financial runs side-by-side comparisons for every client — showing you the exact dollar difference between programs for your specific situation. No guessing, just math. Call (888) 703-1840 or get a free quote online.
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Expert Contributor
Mike Baasti, Licensed Mortgage Broker
Expert contributor to Mortgage Guide California. Licensed mortgage broker (Sponsored by Save Financial, Inc. (NMLS #377740), DRE #01875766) and founder of Save Financial, Inc. in Newport Beach, CA. 20+ years originating conventional, FHA, VA, jumbo, and specialty loans across California.
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Last updated: July 2026. Sources: FHFA, HUD, VA, CalHFA, CFPB, California DRE, California Association of Realtors. All loans subject to credit approval. Rates subject to change.