VA vs Conventional vs FHA Calculator
One house, three loan programs. Compare the monthly payment, the mortgage insurance, and the cash you bring to closing side by side.
The home
VA allows 0%. Conventional and FHA columns rise to their 3% and 3.5% minimums automatically.
Loan terms
The same rate is used for all three programs so the insurance difference is what you see.
VA specifics
Veterans receiving VA disability compensation pay no funding fee at all.
Ongoing costs
Lowest monthly payment: VA loan
Estimated$3,049
$79 a month less than the next closest option (FHA loan).
On a $400,000 home at 6.25% over 30 years, the VA loan is cheapest each month. The VA option needs $0 down versus $12,000 conventional and $14,000 FHA, and carries no monthly mortgage insurance.
VA loan
Lowest payment$3,049/mo
- Down payment
- $0
- Loan amount
- $408,600
- VA funding fee (2.15%)
- $8,600
- Principal & interest
- $2,516
- Monthly mortgage insurance
- $0
- Taxes, insurance, HOA
- $533
- Cash at closing (down payment)
- $0
- Cost over 5 years
- $182,949
No monthly mortgage insurance, ever.
Conventional loan
$3,200/mo
- Down payment
- $12,000
- Loan amount
- $388,000
- No upfront mortgage insurance
- $0
- Principal & interest
- $2,389
- Monthly mortgage insurance
- $278
- Taxes, insurance, HOA
- $533
- Cash at closing (down payment)
- $12,000
- Cost over 5 years
- $204,023
Estimated PMI at 0.86% a year, removable at 80% loan-to-value.
FHA loan
$3,129/mo
- Down payment
- $14,000
- Loan amount
- $392,755
- FHA upfront MIP (1.75%)
- $6,755
- Principal & interest
- $2,418
- Monthly mortgage insurance
- $177
- Taxes, insurance, HOA
- $533
- Cash at closing (down payment)
- $14,000
- Cost over 5 years
- $201,711
Annual MIP of 0.55% for the life of the loan.
Comparisons use one interest rate across all three programs, so the difference you see is mortgage insurance and upfront fees — not rate shopping. Real quotes will differ by lender.
FHA premiums follow HUD's schedule effective March 20, 2023 (Mortgagee Letter 2023-05). Conventional PMI is a mid-range estimate because insurers price it individually.
Lowest payment — VA loan
$3,049
Why VA usually wins
The gap between these programs is almost never the interest rate — it's the mortgage insurance. FHA charges an upfront premium plus an annual premium that lasts the life of the loan for anyone putting under 10% down. Conventional charges PMI until the balance falls to 80% of the home's value. A VA loan charges neither: one funding fee, financed into the loan, and nothing monthly after that.
That funding fee is also waived entirely for veterans receiving VA disability compensation. Confirm your own fee with the VA funding fee calculator.
When another program is worth a look
With 20% or more down, conventional financing skips PMI and the funding fee both, which can make it the cheaper choice overall. Conventional also preserves your VA entitlement for a future purchase — the VA entitlement calculator shows how much you have left. FHA mainly matters when entitlement is used up or the property is FHA-approved but not VA-approved.
Once you've picked a program, price the actual payment in the VA mortgage calculator and read the VA home loan guide.
Frequently asked questions
Is a VA loan always cheaper than conventional or FHA?
For an eligible borrower putting little or nothing down, almost always. VA charges no monthly mortgage insurance, while FHA charges an annual MIP that usually lasts the life of the loan and conventional charges PMI until the loan reaches 80% of the home's value. The VA funding fee is a one-time cost that is normally smaller than years of monthly insurance — and it is $0 if you receive VA disability compensation.
When would a conventional loan beat a VA loan?
If you have 20% or more to put down there is no PMI, so a conventional loan avoids the VA funding fee entirely. Some buyers also use conventional financing to keep their VA entitlement available for a later purchase, or on a property type VA will not finance.
Does FHA ever make sense for a veteran?
Rarely, because FHA requires 3.5% down and lifetime mortgage insurance for most borrowers. It can matter if you have already used your full entitlement, or on a condo that is FHA-approved but not VA-approved.
Are the mortgage insurance figures exact?
FHA premiums come from HUD's published schedule and are exact for a standard 30-year loan. Conventional PMI is priced individually by each insurer from your credit score and down payment, so the PMI figure here is a mid-range estimate — your quote may be higher or lower.
What to do with this number
The difference between these programs is mortgage insurance, not the rate. Your own quotes will move the numbers, but not usually the ranking.
- VA Home Loan Guide
What the VA benefit actually covers, start to finish.
- VA Mortgage Calculator
Price a specific home, taxes and insurance included.
Sources and last verified
- VA funding fee rates: VA.gov funding fee and closing costs
- Rates effective April 7, 2023. Last verified August 31, 2026.
- Payments use standard amortization. No lender-specific pricing is applied.
- What these estimates exclude: your lender's actual rate lock and fees, HOA dues, flood or mortgage-recording costs, escrow-shortage adjustments, and any county-specific tax exemption you may qualify for.
- Every formula and assumption is documented in how we calculate.
Written and reviewed by the Veteran Home Calc editorial team against VA's published guidance. Rates and program rules last reviewed August 31, 2026.
Veteran Home Calc is an independent educational site. It is not affiliated with or endorsed by the U.S. Department of Veterans Affairs, and it does not sell leads or collect your numbers — results are estimates, not loan approvals, offers, or financial advice.