FM VA Web Content Viewer (JSR 286)


Comparing VA and conventional loans

At Freedom Mortgage, our Loan Advisors will help you weigh your financing options and determine the right fit.

As a Veteran, you have a choice when it comes to getting a mortgage. You can go the conventional route and get a standard mortgage or use your Veterans benefits and get a VA loan. Here are some of the differences between them to help you understand which is best for your needs.

Consideration VA Loan Conventional Loan
Type of home Only used for primary residence-owner occupied. Can be used for primary residence, vacation home, investment or rental property.
Down Payment Borrow with no money down. See loan limits. Down payment required. If less than 20% than Private Mortgage Insurance is also needed.
Rates Typically lower than conventional loans. According to Ellie Mae, VA rates are typically 0.33% lower. Rates are tied to market rates.
Credit Scores Department of Veterans Affairs does not set minimum credit score. Freedom Mortgage offers expended credit options. Minimum credit score requirements.
Fees VA Administration charges a mandatory funding fee in addition to origination charges, title insurance, inspection and other fees. Closing costs will include origination charges, title insurance, inspection and other fees.
Debt to Income Ratio Lenders generally use 40%. DTIDebt to Income Ratio is a measure of a borrower’s income compared to their monthly debt. Income to debt cannot exceed 50%.

We will work with you to understand your unique situation and help you take advantage of your VA benefits. Our mission is to help Veterans and active service personnel understand all the options so you can make an informed decision.

FM VA Web Content Viewer (JSR 286)


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FM VA Web Content Viewer (JSR 286)


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