FHA vs VA calculator
Bankrate says FHA loans are available to qualifying general borrowers, while VA loans are limited to eligible active-duty service members, veterans, and some surviving spouses, and it says FHA requires upfront and ongoing mortgage insurance while VA uses an upfront funding fee instead. The official VA funding fee page says first-use purchase loans charge 2.15% with less than 5% down, 1.5% with at least 5% down, and 1.25% with at least 10% down, while later use with less than 5% down is 3.3%.
FHA scenario
FHA commonly uses 3.5% down for qualified borrowers and includes upfront MIP plus annual MIP in the loan cost structure.
VA scenario
VA loans can allow no down payment, do not require monthly mortgage insurance, and instead charge a one-time funding fee unless the borrower is exempt.
Code logic differences
| Rule | FHA | VA |
|---|---|---|
| Eligibility | General qualifying borrowers | Eligible military borrowers and some surviving spouses |
| Minimum down | Often 3.5% for qualified borrowers | Often 0% down |
| Upfront cost | Upfront MIP, commonly 1.75% | Funding fee based on use and down payment |
| Monthly insurance | Annual MIP divided monthly | No monthly PMI or MIP |
| Best monthly payment | Calculatingā¦ | Calculatingā¦ |