Is a VA loan better than a conventional loan?

There might be advantages to a VA loan over a conventional loan, even if you qualify for both: In most cases, you are not required to make any sort of down payment with a VA loan. You won’t have to pay for mortgage insurance. With a conventional loan, you’ll have to pay this monthly surcharge if you put less than 20% down. VA loans can be easier to refinance if you want to tap your home’s equity down the line. There are generally no size limits on VA loans. Together, these perks can fast-track your dreams of purchasing a home and save you thousands over the life of your loan. However, if you can afford a 20% down payment, it could be more sensible to get a conventional loan instead of the VA version. You won’t incur mortgage insurance, and you’ll avoid the VA funding fee.

What are the benefits and drawbacks of a VA loan?

VA loans offer a range of benefits to qualified borrowers. Perhaps most notably, they do not require a down payment, and borrowers who have full entitlement have no VA loan limit. VA loans don’t require private mortgage insurance (PMI), which can help reduce your monthly costs. There are drawbacks, however. Most homebuyers will pay a VA funding fee, which is usually between 1.25% to 3.3%, depending on factors such as the down payment and prior VA loan usage. VA loans also require a VA appraisal, and the property must meet minimum property requirements. Finally, these loans can only be used to purchase or refinance a primary residence. Investment and rental properties aren’t eligible.

What are alternatives to VA loans?

Veterans looking for an alternative to a VA loan may want to consider a conventional or FHA loan. These loans are widely available and can close more quickly with less documentation than a VA loan. Typically, however, conventional and FHA loans require a down payment and may include mortgage insurance, which could increase your monthly cost. Choosing between the types of mortgages available may come down to comparing upfront costs, long-term affordability and how quickly you’d like to have your loan in place.

Best VA loan lenders in 2025

Written by

Andrew Dehan,

Edited by

Katie Lowery

Published on January 27, 2026 | 2 min read

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As an eligible veteran, service member or military spouse, buying a home with a VA loan is one of the most powerful benefits available to you. Although the Veterans Administration mandates some requirements for these loans, not all VA mortgage lenders offer the same rates, service levels or borrower experience.

The best VA home loan lenders combine competitive pricing with flexible underwriting and strong customer support. Some specialize in military borrowers, while others also offer conventional, FHA or jumbo loans. Knowing which approach fits your needs can help you find the best lenders for VA home loans in today’s market.