| Question | FHA | VA |
|---|---|---|
| Who may use it? | Eligible borrowers meeting FHA and lender requirements | Eligible Veterans, service members and qualifying surviving spouses with required entitlement |
| Primary occupancy | Generally required | Required under applicable VA occupancy rules |
| Down payment | A borrower contribution may be required | VA itself may permit no down payment when entitlement, value and the complete transaction support it |
| Ongoing mortgage insurance | Annual FHA mortgage insurance generally applies | No monthly private mortgage insurance; a VA funding fee may apply unless exempt |
| Property review | FHA appraisal and property requirements | VA appraisal and minimum property requirements |
Quick answer
VA financing is available only to borrowers with qualifying service or survivor eligibility. FHA is not tied to military service. Both still require lender approval, acceptable occupancy and a property that meets the applicable program rules.
Compare the complete transaction: eligibility, down payment, mortgage insurance or funding fee, payment, cash to close, property fit and future plans.
Eligibility and occupancy
A VA borrower generally needs a Certificate of Eligibility, but the COE confirms benefit eligibility rather than mortgage approval. FHA borrowers do not need military service, and FHA is not limited to first-time buyers.
Both programs are primarily designed around owner-occupied housing. The timing and nature of occupancy should be discussed before an offer is written.
Upfront and ongoing costs
FHA financing generally includes upfront and annual mortgage insurance. VA financing does not require monthly private mortgage insurance, but a VA funding fee may apply unless the borrower qualifies for an exemption.
Seller contributions, lender credits and assistance may interact differently with each transaction. Compare current written estimates using the same property and closing assumptions.
Property and appraisal considerations
Each program uses an appraisal process that addresses value and applicable property requirements. Neither appraisal replaces an independent home inspection chosen by the buyer.
Condominiums, manufactured homes, repairs, private roads and other property features can require additional review. Program fit should include the home—not only the borrower.