VA vs FHA vs Conventional
Compare the structural costs of each loan type for a given purchase price. Adjust the inputs below to see how down payment, upfront fees, and monthly mortgage insurance differ across programs.
Property & Rate
Illustrative only — rates vary by program and borrower profile.
VA Loan
FHA Loan
Minimum 3.5%
Conventional
PMI not required at 20%+
Down Payment
$0
Upfront Fee
$8,600
2.15% funding fee — financed into loan
Loan Amount
$408,600
Monthly P&I
$2,582.63
Monthly MI / PMI
$0.00
No monthly MI
Est. Total Monthly
$2,582.63
P&I only, no taxes/insurance
Down Payment
$14,000
3.5% of price
Upfront MIP
$6,755
1.75% financed into loan
Loan Amount
$392,755
incl. upfront MIP
Monthly P&I
$2,482.48
Monthly MIP
$176.92
0.55%/yr — life of loan (< 10% down)
Est. Total Monthly
$2,659.40
P&I + MIP, no taxes/insurance
Down Payment
$20,000
5% of price
Upfront Fee
$0.00
No upfront MI
Loan Amount
$380,000
Monthly P&I
$2,401.86
Monthly PMI
$269.17
~0.85%/yr est. • request cancel at 80%, auto-terminates at 78% of original value
Est. Total Monthly
$2,671.03
P&I + PMI, no taxes/insurance
Key Structural Differences
- ★VA: No monthly mortgage insurance, ever. This alone saves hundreds per month compared to FHA and conventional with low down payments.
- ▸FHA MIP: If you put less than 10% down, the annual MIP (0.55% under 5% down, 0.50% at 5–9.99% down) lasts the life of the loan and cannot be cancelled without refinancing. At 10%+ down it cancels after 11 years.
- ▸Conventional PMI: You may request cancellation once the balance reaches 80% of the original value, and the lender must automatically terminate it at 78% of the original value (Homeowners Protection Act) — no refinance required.
- ▸VA Funding Fee: A one-time cost (can be financed) rather than an ongoing monthly charge. Veterans with a 10%+ service-connected disability rating are exempt.
Not sure which program fits your situation?
Gene can review your eligibility and run actual loan scenarios from multiple lenders.
All figures are estimates for illustrative comparison purposes only. FHA MIP rates shown are for 30-year loans with a base loan amount at or below $726,200. Conventional PMI rates are illustrative estimates — actual rates vary by lender, credit score, and loan-to-value ratio. Not a commitment to lend. Rates and terms are determined by lenders and subject to change. Gene Richter, MLO NMLS #2806488 | PBT Bancorp NMLS #257781.