FHA vs VA vs conventional loans
The three main US mortgage programs differ in who backs them and how flexible they are. Conventional loans are not government-insured and usually need stronger credit and a larger down payment. FHA loans are insured by the Federal Housing Administration, allowing down payments as low as 3.5% and lower credit scores, but charge mortgage insurance premiums. VA loans are guaranteed by the Department of Veterans Affairs for eligible service members and veterans, often with no down payment and no monthly mortgage insurance. In 2023, conventional was about 79.6% of US originations, FHA 13.2% and VA 6.6%.
Source: HMDA Data Browser (FFIEC / CFPB). Data as of June 2026.
Side by side
| Feature | Conventional | FHA | VA |
|---|---|---|---|
| Backed by | Private (often Fannie/Freddie) | Federal Housing Administration | Dept. of Veterans Affairs |
| Typical min. down payment | 3–20% | 3.5% | 0% |
| Credit flexibility | Stricter | More lenient | Flexible for eligible vets |
| Mortgage insurance | PMI until ~20% equity | Upfront + annual MIP | None (funding fee instead) |
| Who it's for | Strong-credit buyers | First-time / lower-down-payment | Service members & veterans |
How the mix varies by state
The loan-type mix is not uniform. States with large military populations show much higher VA shares, and states with more first-time or lower-income buyers lean on FHA. You can see this on every state page, or rank them on the highest FHA + VA share page.
Frequently asked questions
What is the difference between FHA, VA and conventional loans?
Conventional loans are not government-insured and usually need stronger credit and a larger down payment, but avoid government mortgage insurance once you have enough equity. FHA loans are insured by the Federal Housing Administration, allowing down payments as low as 3.5% and lower credit scores, but carry mortgage insurance premiums. VA loans are guaranteed by the Department of Veterans Affairs for eligible service members and veterans, often with no down payment and no monthly mortgage insurance.
Which loan type is most common?
Conventional loans are by far the most common in the US: about 79.6% of originations in the 2023 HMDA data, versus about 13.2% FHA and 6.6% VA, with USDA/RHS the smallest.
Is an FHA or VA loan easier to get?
They have more flexible credit and down-payment requirements, which is why first-time and lower-income buyers use them, but they are not automatic. They still require income, employment and property checks, and FHA loans add mortgage insurance premiums that raise the monthly cost.
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Last updated: 2026-06-20