FHA vs. Conventional vs. VA
FHA, conventional, and VA loans are three of the most common mortgage types — each with different eligibility requirements, down payment minimums, mortgage insurance rules, and long-term costs.
FHA loans require as little as 3.5% down and accept lower credit scores, but carry mortgage insurance (MIP) for the life of the loan. Conventional loans require stronger credit and typically 3–5% down, but PMI can be removed once you reach 20% equity. VA loans require no down payment and no mortgage insurance at all — but are only available to eligible veterans and service members. Read our full comparison of FHA vs. conventional loans in Louisiana.
The right choice depends on your credit profile, how much you can put down, whether you have VA eligibility, and how long you plan to stay in the home. A borrower with a 640 credit score and 3.5% down may benefit most from FHA. A borrower with a 740 score and 10% down may save more with conventional. And a veteran with full entitlement will almost always benefit from the VA program.
Why This Matters: Choosing the wrong loan program can cost you thousands in unnecessary insurance, higher rates, or missed benefits. Comparing all three options side by side — with real numbers — is the only way to know which one truly fits your situation.
Common question
Which loan type has the lowest down payment?
VA loans require zero down payment for eligible veterans. USDA loans also offer zero down in eligible areas. FHA requires 3.5%, and conventional starts at 3% with strong credit.
Which loan type is best for first-time buyers?
It depends on your credit, savings, and eligibility. FHA is popular for lower credit scores. Conventional can cost less with strong credit. VA is the best value for eligible service members. Compare all three before deciding.
Can I switch loan types after I start the process?
Yes. If your qualification profile supports it, your loan officer can pivot to a different program before closing. This is one reason working with an experienced lender matters.
Related Mortgage Terms
Not sure which loan type is right for you? We will compare FHA, conventional, and VA side by side — with real numbers — so you can see the difference.
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