VA vs. Conventional Loans
VA loans are generally the best deal in mortgage lending. But there are rare situations where conventional could make more sense — even for eligible veterans.
| Feature | VA Loans | Conventional Loans |
|---|---|---|
| Down Payment | Zero required | 3–20% |
| Mortgage Insurance | None (funding fee instead) | PMI required below 20% down |
| Funding Fee | 1.25–3.3% (waived for disabled vets) | None |
| Interest Rates | 0.25–0.50% lower typically | Standard market rates |
| Credit Requirements | More flexible (lender sets minimum) | 620+ minimum |
| Property Types | Primary residence only | Primary, second home, investment |
| Loan Limits | None with full entitlement | $1,209,750 conforming |
| Appraisal | VA appraisal required (stricter) | Standard appraisal |
Best For: VA Loans
Almost every eligible veteran buying a primary residence. The combination of zero down, no PMI, and lower rates is unbeatable.
Learn More About VA Loans →Best For: Conventional Loans
Veterans buying second homes or investment properties (VA is primary only), or veterans with 20%+ down who want to preserve VA entitlement for a future purchase.
Learn More About Conventional Loans →The Bottom Line
For primary residence purchases, VA wins for nearly every veteran. The only exception is when you have 20%+ down and want to save your VA entitlement. Save Financial's VA specialist helps military families evaluate both options.
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.