VA Loans vs FHA Loans
Compare VA loans and FHA loans in Florida. Understand the differences between zero-down VA loans and low-down-payment FHA loans to find the best mortgage for your situation.
Call (855) 744-EDGEVA Loans vs FHA Loans Comparison
Both VA and FHA loans are government-backed mortgages designed to help homebuyers, but they serve different audiences with different benefits and requirements.
| Feature | VA Loans | FHA Loans |
|---|---|---|
| Eligibility | Veterans, active military, eligible spouses | Any buyer (first-time buyers preferred) |
| Down Payment | 0% | 3.5% (with 580+ credit) |
| Mortgage Insurance | VA funding fee (one-time) | FHA MIP (monthly + upfront) |
| Credit Score | 620+ typically | 580+ for 3.5% down |
| Loan Limits | No limits (most areas) | $498,257+ (varies by county) |
| Property Types | Primary residence only | Primary residence only |
VA Loans
Best For:
- Veterans and active military
- Zero down payment needed
- No monthly mortgage insurance
- Higher loan amounts possible
- Competitive interest rates
VA Loan Requirements:
- Military service verification
- Certificate of Eligibility (COE)
- Credit score 620+
- VA funding fee (financed or paid upfront)
FHA Loans
Best For:
- First-time homebuyers
- Lower credit scores accepted
- More flexible income guidelines
- Gift funds allowed for down payment
- Lower down payment than conventional
FHA Loan Requirements:
- 3.5% down payment (with 580+ credit)
- Credit score 580+ for best terms
- Upfront + monthly MIP required
- Primary residence requirement
Detailed VA vs FHA Comparison
Down Payment & Costs
VA Loans:
Zero down payment required. VA funding fee of 2.15% (for first-time use) can be financed into the loan or paid upfront.
FHA Loans:
3.5% down payment with 580+ credit score. FHA requires both upfront MIP (1.75%) and monthly MIP (0.55%).
Credit & Eligibility
VA Loans:
Requires military service verification. Credit score typically 620+. More flexible debt-to-income ratios.
FHA Loans:
Available to any buyer. Credit score 580+ for 3.5% down, 500+ for 10% down. More lenient credit requirements than conventional loans.
Loan Limits & Property Types
VA Loans:
No loan limits in most areas. Can be used for primary residence only. No limit on how many times you can use the benefit.
FHA Loans:
Loan limits vary by county ($498,257+ in most Florida areas). Primary residence only. Cannot be used for investment properties.
Refinancing Options
VA Loans:
VA IRRRL (Interest Rate Reduction Refinance Loan) - streamlined refinance with minimal documentation.
FHA Loans:
FHA Streamline Refinance - simplified refinance for existing FHA borrowers with reduced paperwork.
Which Loan is Right for You?
Choose VA Loans If You:
- Are a veteran, active-duty service member, or eligible spouse
- Want zero down payment
- Prefer no monthly mortgage insurance
- Need higher loan amounts
- Have good credit but want maximum benefits
Choose FHA Loans If You:
- Are a first-time homebuyer
- Have lower credit scores (580+)
- Can afford 3.5% down payment
- Want gift funds for down payment
- Need more flexible qualification requirements
Not Sure Which Loan is Best for You?
Contact Edge Home Loans for a free consultation. We'll analyze your situation and recommend the best mortgage option for your needs.
Call (855) 744-EDGE Schedule Consultation