VA loan vs. Conventional loan
If you're an eligible veteran, service member, or surviving spouse, the VA loan is one of the strongest products available: zero down, no monthly mortgage insurance, and competitive rates. Conventional is the fallback for non-primary-residence purchases or when you've exhausted VA entitlement.
Self-employed veterans qualify for both using the same income analysis (two years of returns, net income, add-backs) — the VA's advantages are in the down payment and insurance, not the income method.
Side by side
| Factor | VA loan | Conventional loan |
|---|---|---|
| Down payment | 0% | 3–5% |
| Mortgage insurance | None (one-time funding fee) | PMI under 20% down (cancelable) |
| Eligibility | Qualifying military service required | Open to all qualified borrowers |
| Property use | Primary residence only | Primary, second home, investment |
| Rate | Competitive, often below conventional | Baseline |
| Self-employed income | 2-yr returns, net income | 2-yr returns, net income |
Figures are representative ranges, not quotes, and vary by lender. Read the full guides: VA loan · Conventional loan.
Who should pick va loan
Eligible veterans buying a primary residence — zero down, no PMI, and strong rates make VA hard to beat when you qualify.
Who should pick conventional loan
Buyers without VA eligibility, or veterans buying a second home or investment property, or those preserving VA entitlement for a later purchase.
Bottom line
Still deciding? Take the 5-question loan quiz, compare every option on the loan types page, or size a purchase with the affordability calculator.
FAQ
Yes. Self-employed veterans use the same two-year tax-return, net-income analysis as conventional — add-backs apply. The VA's benefits (0% down, no PMI) are independent of how your income is documented.
No monthly mortgage insurance. Instead there's a one-time VA funding fee (which can be financed, and is waived for veterans with a service-connected disability). Over time, the absence of monthly insurance is a major cost advantage.
Educational information only — not financial advice, and not a quote, pre-approval, or offer of credit. Mortgage Merlin is a publisher, not a lender or broker.