VA vs. FHA
Videos feature Tim Lewis, VA Loan Team Manager, NMLS #157603.
What are the differences between VA loans and FHA loans?
So many borrowers want to know how the VA and FHA loan programs differ. When comparing FHA and VA loan programs, most people want to know the differences in down payment requirements, fees, interest rates, mortgage insurance, prepayment penalties, and qualifying standards.
VA loans typically have:
- No down payment required
- No private mortgage insurance
- A VA funding fee which can be rolled into the loan
FHA loans can typically have:
- A 3.5% down payment
- An upfront mortgage insurance premium which can be rolled into the loan
- Monthly mortgage insurance payments
Both programs have relaxed qualifying standards, competitive interest rates, and a streamline refinancing option. Neither has a prepayment penalty. Both VA and FHA loan programs require owner occupancy. VA home loans are only open to those with VA eligibility.
A VA mortgage professional can help you understand the differences between the FHA and VA loan programs, and look at your individual situation to help determine which one is right for you
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