What's the difference between Conventional and FHA loans?

FHA loans require lower down payments (3.5% vs 3-20%) and accept lower credit scores, but have mandatory mortgage insurance for the life of the loan. Conventional loans allow PMI removal at 20% equity and often have lower rates for well-qualified borrowers.

Is a 15-year mortgage better than 30-year?

15-year mortgages have lower interest rates and much less total interest paid, but higher monthly payments. 30-year mortgages offer lower payments and flexibility. The best choice depends on your budget and financial goals.

Who qualifies for a VA loan?

VA loans are available to active-duty service members, veterans, National Guard members, and certain surviving spouses. VA loans offer 0% down payment and no PMI, often making them the best option for eligible borrowers.

Compare Mortgage Loans

Enter your scenario once, see all your options. Compare Conventional, FHA, and VA loans with 15 and 30-year terms side-by-side.

Home Price

Down Payment

20%

Credit Score

VA Eligible?

No Yes

Time Horizon

✓

Best Option for Your Scenario

Conventional 30-Year

Lowest total cost over 7 years with your 20% down payment

Conventional

30-Year Fixed

Monthly Payment $2,076 P&I: $2,076

Down Payment $80,000 (20%)

Interest Rate 6.75%

PMI $0/mo

Total Cost (7 yrs) $174,000

Total Interest (Full Term) $427,000

Lowest Interest

Conventional

15-Year Fixed

Monthly Payment $2,812 P&I: $2,812

Down Payment $80,000 (20%)

Interest Rate 6.00%

PMI $0/mo

Total Cost (7 yrs) $236,000

Total Interest (Full Term) $186,000

Lower Down Payment

FHA

30-Year Fixed

Monthly Payment $2,385 P&I + MIP

Min Down Payment $14,000 (3.5%)

Interest Rate 6.50%

MIP (Monthly) $286/mo

Total Cost (7 yrs) $200,000

Total Interest (Full Term) $485,000

Note: MIP required for life of loan with 3.5% down

Best Value

VA Loan

30-Year Fixed

Monthly Payment $2,594 P&I only (no PMI)

Min Down Payment $0 (0%)

Interest Rate 6.25%

PMI/MIP $0/mo

VA Funding Fee $9,300

Total Cost (7 yrs) $218,000

Total Interest (Full Term) $534,000

Eligibility: Requires military service. Enable above to compare.

Detailed Comparison

Feature	Conv 30	Conv 15	FHA 30	VA 30
Min Down Payment	3%	3%	3.5%	0%
Min Credit Score	620	620	580	None*
Max DTI	43-50%	43-50%	43-57%	41%
Mortgage Insurance	PMI if <20%	PMI if <20%	MIP for life	None
MI Removable?	Yes at 20%	Yes at 20%	No**	N/A
Property Types	All	All	Must meet FHA standards	Primary only
Best For	Good credit, 5%+ down	Fast payoff, high income	Lower credit/down payment	Eligible veterans

*VA requires lender minimums, typically 620. **FHA MIP removable with 10%+ down after 11 years.

Understanding Your Options

Conventional Loans

Best for borrowers with good credit and some savings. Key advantages:

PMI can be removed at 20% equity
Best rates for 740+ credit scores
No upfront funding fees
Investment properties allowed

FHA Loans

Government-insured loans for first-time buyers or lower credit. Benefits:

Lower credit score requirements (580+)
3.5% minimum down payment
More lenient DTI requirements
Gift funds allowed for down payment

VA Loans

Often the best option for eligible veterans and service members:

No down payment required
No monthly mortgage insurance
Competitive interest rates
VA funding fee can be financed

15 vs 30-Year Terms

The term choice significantly impacts your finances:

30-year: Lower payments, more flexibility, more interest
15-year: ~0.5% lower rate, builds equity faster
Consider: Can you invest the payment difference?

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Disclaimer: Rates shown are estimates based on current market conditions and credit tier. Actual rates vary by lender, credit profile, and other factors. Get quotes from multiple lenders for accurate pricing.