Is a VA loan better than a conventional loan?

For most eligible veterans and active-duty buyers, a VA loan is the stronger option because it offers $0 down, no monthly mortgage insurance, and competitive rates. Conventional can be better in specific cases, such as a strong-credit buyer putting 20% down or someone who wants to avoid the VA funding fee. Mindy will compare both for your situation.

Do VA loans have PMI or mortgage insurance?

No. VA loans do not require monthly private mortgage insurance, even with $0 down, which is one of their biggest advantages over low-down-payment conventional loans.

Can I use a VA loan more than once?

Yes. VA loan benefits can be reused, and in many cases you can have more than one VA loan at a time depending on your remaining entitlement. Mindy can review your entitlement and options.

Can I get a conventional loan with less than 20% down?

Yes. Many conventional loans start at 3% to 5% down. You will pay private mortgage insurance until you reach about 20% equity, at which point it can be canceled.

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VA loan vs. conventional: which is better?

Q: What is the VA funding fee?

The VA funding fee is a one-time fee that helps sustain the VA loan program. It can be financed into the loan, and some veterans (for example, those with a service-connected disability) may be exempt. Mindy can tell you whether it applies to you and how much it would be.

For most eligible veterans and active-duty buyers, a VA loan wins: $0 down, no monthly mortgage insurance, and competitive rates. But a conventional loan can be the better pick in a few cases, like a strong-credit buyer putting 20% down, or when you want to avoid the VA funding fee. Here is how they compare so you can choose with confidence.

By Mindy Hay, Senior Loan Officer · NMLS #292224 · Updated September 2026

VA vs. conventional at a glance

	VA loan	Conventional
Down payment	$0 for eligible buyers	3% to 5%+ (20% to skip PMI)
Monthly mortgage insurance	None	PMI until ~20% equity
Upfront fee	VA funding fee (financeable; some exempt)	None
Credit flexibility	More flexible	Rewards stronger credit
Who it's for	Eligible veterans, active-duty, some spouses	Everyone; primary, second, investment
Property use	Primary residence	Primary, second home, or investment

When the VA loan wins

If you are eligible, the VA loan is usually the strongest deal in the market. The combination of $0 down and no monthly mortgage insurance often makes the payment lower than a comparable conventional loan, and the credit guidelines tend to be more forgiving. For most military buyers, this is the clear choice. See our full VA loan page for details.

When conventional might be better

Conventional can edge ahead in a few situations:

You are putting down 20% or more, so you would skip PMI anyway and avoid the VA funding fee.
You are buying a second home or investment property (VA is for a primary residence).
You want to preserve your VA entitlement for a future purchase.

The bottom line

There is no one-size-fits-all answer. The right loan depends on your eligibility, your down payment, and your goals. The good news: comparing them takes one quick conversation, and Mindy will show you the real monthly payment and total cost of each so the choice is obvious. If you serve your community, you may also stack Homes for Heroes savings on top.

Mindy Hay is a senior loan officer with Union Home Mortgage, based in Tigard and serving the greater Portland metro, Southwest Washington, and Arizona.

Frequently asked questions

Is a VA loan better than conventional?

For most eligible buyers, yes: $0 down, no monthly mortgage insurance, and competitive rates. Conventional can win with 20% down or for a second home or investment. Mindy will compare both for you.

Do VA loans have PMI?

No. VA loans have no monthly mortgage insurance, even with $0 down, which is a major advantage.

What is the VA funding fee?

A one-time fee that supports the VA program. It can be financed into the loan, and some veterans (for example, with a service-connected disability) may be exempt. Mindy can confirm your amount.

Can I get conventional with less than 20% down?

Yes, many start at 3% to 5% down with PMI that cancels around 20% equity. See our down payment guide.