How Do VA and FHA Loans Compare?

The VA and FHA loans are low interest rates home financing programs that are offered to all qualified citizens of the United States. Basically, the goal of these loans is to financially support low-income American families so that that they can obtain and own a home.

VA and FHA Loans Compared

The home financing programs under the supervision of the Veteran's Affairs and the Federal Housing Administration have similarities and differences.


  • both home loans are guaranteed by the federal government wherein the funding is provided by private lenders

  • both programs offer low annual percentage rates compared to conventional loans

  • both loan programs give a family with low-to-moderate income the privilege to enjoy home ownership

  • both programs only require low down payment or no down payment at all

  • both programs administer the same occupancy requirements

  • both programs offer counseling to homeowners who encounter repayment problems due to financial difficulties


  • VA home loans are exclusive for veterans and individuals active in the military duty

  • FHA loans require payment for mortgage insurance premium, while VA loans do not

  • VA loans provide a basic entitlement worth $36,000 to its borrowers which is not included on FHA loans

  • VA loan borrowers can choose their own appraisers provided that the specialist meets the criteria set by the agency; FHA has a established list of approved appraisers that borrowers can select
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