VA Loans vs Conventional Loans
Compare VA loans and conventional loans in Florida. Understand the benefits of zero-down VA loans versus traditional mortgages for veterans and homeowners.
Call (855) 744-EDGEVA vs Conventional Loans Comparison
VA loans are government-guaranteed mortgages for veterans, while conventional loans are traditional mortgages offered by private lenders with no government backing.
| Feature | VA Loans | Conventional Loans |
|---|---|---|
| Eligibility | Veterans, active military, eligible spouses | Any buyer with strong qualifications |
| Down Payment | 0% | 3-20% (based on credit and property) |
| Mortgage Insurance | VA funding fee (one-time) | PMI if < 20% down (monthly) |
| Credit Score | 620+ typically | 620+ (higher for best rates) |
| Loan Limits | No limits (most areas) | No upper limits |
| Property Types | Primary residence only | Primary, second homes, investment |
VA Loans
Best For:
- Veterans and active military personnel
- Zero down payment required
- No monthly mortgage insurance
- Competitive interest rates
- Reusable benefit (lifetime entitlement)
VA Loan Requirements:
- Military service verification (COE)
- Credit score 620+
- VA funding fee (2.15% for first-time use)
- Primary residence requirement
Conventional Loans
Best For:
- Buyers with excellent credit
- Investment property purchases
- Jumbo loan amounts
- Second home purchases
- Lowest possible interest rates
Conventional Loan Requirements:
- Credit score 620+ (higher for best rates)
- 3-20% down payment
- PMI if down payment < 20%
- All property types allowed
Detailed VA vs Conventional Comparison
Down Payment & Costs
VA Loans:
Zero down payment required. VA funding fee (2.15% for first-time use) is a one-time cost that can be financed or paid upfront. No monthly mortgage insurance.
Conventional Loans:
3-20% down payment required (higher amounts preferred). Private Mortgage Insurance (PMI) required if down payment < 20%, typically 0.5-1% of loan amount annually.
Credit & Eligibility
VA Loans:
Requires military service verification and Certificate of Eligibility. Credit score 620+ typically. More flexible debt-to-income ratios than conventional loans.
Conventional Loans:
No military requirement - available to all qualified buyers. Credit score 620+ required (higher scores get better rates). Strict debt-to-income requirements.
Loan Limits & Property Types
VA Loans:
No loan limits in most Florida areas. Can only be used for primary residences. VA entitlement can be used multiple times throughout lifetime.
Conventional Loans:
No upper loan limits. Can be used for primary residences, second homes, and investment properties. More flexible property requirements.
Refinancing Options
VA Loans:
VA IRRRL (Interest Rate Reduction Refinance Loan) - streamlined refinance with minimal documentation and no appraisal typically required.
Conventional Loans:
Rate & Term Refinance - change rate/term. Cash-Out Refinance - access equity. Debt Consolidation options. More lender flexibility.
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
- Plan to use your VA benefit
- Are buying a primary residence
Choose Conventional Loans If You:
- Are not eligible for VA loans
- Have excellent credit (740+)
- Can afford a larger down payment
- Want to buy an investment property
- Need a jumbo loan amount
Need Help Comparing VA and Conventional Loans?
Contact Edge Home Loans for expert guidance. We'll help you determine which loan type best fits your financial situation and goals.
Call (855) 744-EDGE Schedule Consultation