USDA vs FHA vs VA Loan 2027 Comparison

Compare government-backed loan programs 2027 — USDA (0% down rural), FHA (3.5% down anywhere), VA (0% down for veterans). See which fits your situation.

VA Loan Best Features

0% down. No PMI ever. VA limits high ($766k+). Funding fee 2.15-3.6% (financed). Available only to veterans, active military, surviving spouses.

USDA Loan Best Features

0% down. Lower fees than FHA (1% upfront, 0.35% annual). Rural areas only. Income capped 115% AMI.

FHA Best Features

Anywhere, anyone (FICO 580+ for 3.5% down, 500-579 needs 10%). Most flexible underwriting. Highest fees: 1.75% upfront, 0.55% annual for life.

Decision Tree

Veteran? → VA. Rural + under income cap? → USDA. Neither? → FHA (or Conv 97 if 700+ FICO).

Source: rd.usda.gov, hud.gov, va.gov loan program comparisons. Last updated: May 2026.

Frequently Asked Questions

Can I have multiple VA loans?

Yes. VA bonus entitlement. Most vets can have 2 VA loans simultaneously. Restoration of entitlement after sale.

USDA in suburbs?

Surprisingly often yes. Check USDA eligibility map. Many suburbs of mid-size cities qualify even if they look urban.

FHA after foreclosure?

3 years post-foreclosure for FHA. 7 years post-bankruptcy Ch 7. Faster than conventional.