VA or FHA: Which Loan Program is Right for You?

Both Government-Backed Loans Have Their Advantages

Many homebuyers want to know about the differences between the VA and FHA mortgage programs. Though there are some similarities, there are also very distinct differences. 

VA Home Loan benefits are only for eligible veterans, active duty personnel and certain surviving spouses. Most VA borrowers are attracted to the “no money down” feature of the program.  For VA mortgages within conforming loan limits, zero down payments are permitted. The government backing of each VA loan is based on entitlement earned through military service. The guarantee allows for a no-money-down mortgage as well as others benefits, including no private mortgage insurance (PMI). 

FHA mortgages are for qualified borrowers who wish to put a minimal amount of money down and are willing to pay mortgage insurance premiums. Often, the program is used by first-time homebuyers, but this is not a prerequisite. The FHA provides mortgage insurance which is paid by borrowers.  The federal insurance allows lenders to offer favorable terms like lower down payments. As little as 3.5% down payment is required on most FHA loans.

To find out which loan is right for you, call 888-589-1665 with no obligation or click on the form to the right to submit your information.

Quick Comparison: FHA vs VA