FHA Loans vs. VA Loans in San Diego When a veteran is preparing to buy a home, they often ask “Is a VA loan better than an FHA loan?” The answer is “YES.” It’s important to understand the type of loan you’re applying for. After all, you’ll be paying on that mortgage for the next 30 years. The loan you choose should offer competitive rates compared to other loan options. These are just a couple of the reasons why a VA loan is the better choice. It’s also important to remember and understand that each loan has different qualities associated with it. For example, you can borrow up to $417K with no down payment when you get a VA loan whereas the loan cap is much less for an FHA loan. Plus, a 3.5% minimum down payment is required with FHA loans. Finally, you’re required to purchase PMI or Private Mortgage Insurance with an FHA loan at a rate of 0.85% of the loan principal annually, thereby making an FHA loan considerably more expensive over that loan’s lifetime. Be sure you take time to study the way in which a VA loan compares with an FHA loan. Should you have additional questions, you should speak directly with a lender that offers both types of loans. Community Mortgage 814 Morena Blvd #310 San Diego, CA 92110 (619) 692-3630 https://www.google.com/maps?cid=10479155514255890680 https://local.google.com/place?id=10479155514255890680&use=posts&lpsid=1433004993907499844