Practical guide · Mortgage & home buying

FHA vs. VA loans: compare the full monthly cost

Compare eligibility, down payment, mortgage insurance, funding fees, and long-term costs before choosing between an FHA loan and a VA-backed loan.

01

Start with eligibility, not the advertised payment

FHA loans are broadly available to qualified borrowers, while VA-backed loans require eligible military service or another qualifying relationship. A payment comparison is useful only after confirming that both choices are genuinely available.

02

Compare every cost in the same scenario

Use the same purchase price, down payment, loan term, rate, property taxes, and homeowners insurance. Then add FHA mortgage insurance or the applicable VA funding fee so the comparison does not hide program-specific costs.

  • Cash needed at closing
  • Principal and interest
  • Taxes and homeowners insurance
  • Mortgage insurance or funding fee
  • Total interest during the expected holding period
03

Choose using the holding period and flexibility

A loan with a lower initial cash requirement may cost more over time. Test several down payments and holding periods, and compare the calculator result with lender disclosures before committing.

Test your scenario

Use the related calculators

The guide frames the comparison; the calculators let you enter your own numbers and test alternatives.