Financing tools
Conventional vs. FHA vs. VA
Down payment, rate, and insurance or funding-fee structure all differ by program. Enter your actual loan estimate figures for each to compare total monthly payment side by side.
Direct answer: no single program is universally cheaper — it depends on your down payment, credit, and the specific rate and fees a lender actually quotes you for each. This tool intentionally ships with no pre-filled rate, MIP, or funding-fee percentage — those numbers come from your own loan estimate, not a guess.
Shared basics
Conventional
FHA
VA
MIP, funding fee, and PMI fields are intentionally blank — enter the actual figures from a current loan estimate. These programs’ fees change and vary by lender, credit, and program details.
Program comparison
| Program | Loan amount | P&I | MI / funding fee | Total monthly | Total at 7 yrs |
|---|---|---|---|---|---|
| Conventional | $360,000 | $1,000 | $0 | $1,000 | $84,000 |
| FHA | $386,000 | $1,072 | $0 | $1,072 | $90,067 |
| VA | $400,000 | $1,111 | $0 | $1,111 | $93,333 |
FHA’s upfront MIP and VA’s funding fee are modeled as financed into the loan amount (the standard default handling for both), which is why the loan amount shown is higher than the base amount after down payment. Conventional PMI is applied for your full holding period — in practice it’s often cancellable once you reach around 20% equity, which this tool doesn’t model automatically.
Every lender quotes this differently
Ask for all three quotes in writing, on the same day.
Rate and fee quotes shift daily. To make a fair comparison across conventional, FHA, and VA financing, ask your lender for loan estimates on all three, pulled the same day, then enter those real figures here.
Methodology
How this comparison works.
- Conventional — not government-insured. Monthly PMI is applied as an ongoing cost for the full holding period entered; in practice, PMI is often cancellable once you reach roughly 20% equity, which this tool does not model automatically.
- FHA — the upfront mortgage insurance premium (MIP) is modeled as financed into the loan amount, the standard default handling; the annual MIP is applied monthly based on the base loan amount.
- VA — the funding fee is modeled as financed into the loan amount, with no ongoing monthly mortgage insurance afterward.
FHA MIP rates and VA funding fee percentages are set by HUD and the VA respectively and change over time; VA funding fees also vary by down payment amount and whether it’s a first or subsequent use of the benefit. Confirm current figures directly with a lender — nothing on this page is a current rate or fee quote.
Worked example (hypothetical)
A $400,000 purchase, 30-year term: Conventional at 10% down, 7% rate, $150/month PMI runs roughly $2,545 total monthly, or about $213,787 over 7 years. FHA at 3.5% down, 6.75% rate, 1.75% upfront MIP and 0.55% annual MIP runs roughly $2,724 monthly, or about $228,843 over 7 years. VA at 0% down, 6.75% rate, 2.15% funding fee runs roughly $2,650 monthly, or about $222,614 over 7 years. These figures are entirely hypothetical — none of them are current MIP, funding-fee, or PMI rates.
Downside cases
- FHA mortgage insurance often lasts the life of the loan (depending on down payment and loan date), unlike conventional PMI, which can typically be removed.
- A VA loan requires eligibility (veteran or qualifying service member status) — it is not available to every buyer.
National considerations
Loan limits, MIP schedules, and VA funding-fee tiers are set at the national level and change periodically.
Utah considerations
Utah conforming loan limits and available down-payment assistance programs vary by county — confirm current figures with a lender.
Author: Todd McClean, Realtor® | Real Estate Investment Strategist, Mountainland Realty, Inc.. Reviewed July 19, 2026. This tool provides general real estate information and is not legal, tax, accounting, lending, securities, commodities, or financial-planning advice.
Next step
Not sure which program fits?
A strategy review can help think through eligibility and tradeoffs before you talk to a lender.