FHA vs VA Loan Comparison Calculator 2026
FHA loans require 3.5% down + annual MIP for life of loan. VA loans offer 0% down with one-time funding fee (1.4-3.6% based on service + use) but require veteran/active service member eligibility. For eligible veterans, VA usually wins on total cost — no MIP, no down payment requirement, often lower rates.
FHA Loan Structure
FHA loans backed by HUD — open to all borrowers. Minimum 3.5% down (10% if credit 500-579). Upfront MIP: 1.75% of loan rolled into balance. Monthly MIP: 0.50-0.80% of loan annually (life of loan if put down <10%, 11 years if 10%+). Loan limits same as conforming ($806,500 baseline 2026). No income limits.
VA Loan Structure
VA loans backed by Dept of Veterans Affairs — restricted to veterans, active duty (90+ days), reservists/guard (6+ years), surviving spouses. Zero down payment allowed up to county loan limit. One-time funding fee: 2.15-3.6% for first use (no down), 1.25-2.25% subsequent. Waived entirely for disability-rated veterans. No monthly MIP ever. No private mortgage insurance.
Total Cost Comparison
For a $385K home with same rate: FHA requires $13,475 down + ongoing MIP $160-310/mo for life. VA requires $0 down + one-time funding fee rolled into loan + no MIP. Over 30 years, VA total cost is typically $30-60K LESS than FHA for equivalent loan. For disabled veterans, VA savings reach $50-90K. VA is the best government-backed mortgage program when eligibility met.
Source: HUD FHA Mortgagee Letter 2024-26 (MIP rates), VA Lender Handbook M26-7 Chapter 8 (funding fee 2026). Last updated: May 2026.