Both help with homeownership — but one gives veterans a serious edge.

If you’ve served in the military, you may find yourself choosing between a VA loan and an FHA loan — especially if your credit isn’t perfect or you’re working with a lower down payment.

👉 Both loans are government-backed and built for accessibility. But if you qualify for VA, it’s almost always the better financial option.

Let’s break down the key differences between VA and FHA — and help you make the smartest move toward homeownership.

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✅ Quick Comparison: VA vs. FHA Loan

Feature	VA Loan	FHA Loan
Down Payment	$0	3.5% minimum
Mortgage Insurance	❌ None	✅ Required (MIP)
Credit Score Needed	~580+	500–579 (10% down)
Loan Limits	No official limit with full entitlement	Subject to county limits
Reuse Benefit	✅ Yes	✅ Yes
Available To	Veterans, active-duty, eligible spouses	All qualified buyers
Funding Fee	✅ One-time VA fee	✅ Upfront & monthly MIP

📘 While FHA loans are great for the general public, VA loans are specifically built for those who’ve served — and come with more favorable terms because of the VA guarantee.

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🏡 Why VA Is Better If You’re Eligible

1. No Down Payment Needed

• FHA requires 3.5% down, which means $12,250 on a $350,000 home
• VA requires $0 down, saving you years of saving or needing gift funds

✅ That lets you buy faster — and still build equity from day one.

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2. No Monthly Mortgage Insurance

• FHA loans require both upfront and monthly MIP, which sticks around for the life of the loan if your down payment is less than 10%
• VA loans have no PMI or MIP — ever

💡 That alone could save you $150–$400/month, every month.

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3. Lower Monthly Payments (Even at Similar Rates)

Without PMI and with lower average rates, VA loans often result in lower payments — even when compared to FHA loans at the same interest rate.

📘 You get more home for your money — or just more breathing room in your monthly budget.

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4. Easier Refinance Options

• VA offers the Interest Rate Reduction Refinance Loan (IRRRL) with:
  • No appraisal
  • No income re-verification
  • Super-fast closings

While FHA has a streamline refi too, VA’s version is quicker and often cheaper.

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🧠 When FHA Might Make Sense Instead

• You’re not eligible for VA benefits
• Your credit score is below 580 and you don’t have a full 10% down
• You’ve already used your full VA entitlement and don’t want to restore it or bring a down payment
• You’re buying a non-owner-occupied property (VA is only for primary residences)

But for eligible veterans? VA usually wins — hands down.

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🏢 Why PRMI?

We help veterans and buyers:

• Compare VA vs. FHA options side-by-side
• Understand funding fees, MI, and true long-term cost
• Choose the loan that gets you in — and sets you up for long-term success
• Access manual underwriting and flexible approval options for both programs

We’re a direct lender who knows how to structure both, but will always guide you toward what serves you best.

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👇 VA-Eligible and Not Sure Which Loan to Choose?

Let’s walk through the numbers, payment options, and pros/cons together — so you know exactly what’s right for your situation.