Conventional VS VA Loans

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Real Estate

It is not uncommon for clients who are VA Eligible to ask us the difference between the two loan instruments. There are times where it is not beneficial for a veteran to obtain a VA loan, so we met with our Loan Officer and learned the following: 


Here are the differences between Conventional & VA :



·         No Private Mortgage Insurance if you put 20% down

·         Private Mortgage Insurance automatically drops off at 78% (if you closed on your home after July 1999) however, you can contact your servicer and have removed at 80%

·         Competitive rates

·         Minimum credit score 620 (can verify lender to lender)



·         100% financing available

·         Competitive rates

·         No Private Mortgage Insurance

·         Funding fee required in many  cases (can range from1.25% to 3.3% depending on down payment)

·         Guaranteed by Department of Veteran Affairs

·         Minimum credit score 580 (can verify lender to lender)


If the Veteran is willing to put down 20% or more, it is always preferable and more cost effective for the life of the loan, for the Veteran to use the Conventional Loan over a VA Loan. 

If you are a Veteran looking for a hard working agent that will be there for you every step of the way, we would love to hear from you! 

We will be posting information about the other loan instruments in future Blog posts. 

The information obtained for this blog post was provided by Khristine Hartman
cell 912.713.9636