VA Loan vs FHA vs Conventional: Which Fits You?
August 19, 2026
Written by Jeff Wucinich, NMLS #416164 Branch Manager · Fairway Independent Mortgage Corporation · Las Vegas, NV
Written by Jeff Wucinich, NMLS #416164 Branch Manager · Fairway Independent Mortgage Corporation · Las Vegas, NV
Choosing between a VA loan, FHA loan, and conventional loan comes down to three main factors: how much you can put down, whether you want monthly mortgage insurance, and whether you qualify for the VA benefit. A clear side-by-side comparison shows the real differences so you can pick the loan that costs less over time and matches your situation.
In my experience working with first-time buyers and veterans across Las Vegas, Henderson, and near Nellis and Creech Air Force Base, most people start with the wrong question. They ask which loan has the lowest rate. The better question is which loan structure fits your down payment, credit, and long-term plans.
This table is the starting point. The details below explain what those differences actually mean for your monthly payment and total cost.
If you are eligible for a VA loan, it is often the lowest-cost option for a primary home. You can buy with zero down payment and you never pay monthly mortgage insurance.
The main cost is the VA funding fee. For a first-time use with no down payment it is currently 2.15% of the loan amount. It drops if you put money down and is completely waived if you receive VA compensation for a service-connected disability. Many veterans near Nellis AFB and across Clark County qualify for the waiver.
VA loans also tend to be more flexible on credit and residual income guidelines. The trade-off is that the home must be your primary residence and must pass a VA appraisal that includes Minimum Property Requirements.
An FHA loan is often the best path for buyers who are not VA-eligible and have limited down payment or lower credit scores. You can put as little as 3.5% down with a credit score of 580 or higher.
The ongoing cost is mortgage insurance. FHA charges both an upfront premium (1.75%) and an annual premium that is paid monthly. On most loans with less than 5% down, that monthly insurance stays for the life of the loan. That long-term cost is the main reason many buyers later refinance out of FHA once they have more equity or better credit.
FHA works well for first-time buyers in Las Vegas who need the lower down payment and more flexible underwriting.
A conventional loan (backed by Fannie Mae or Freddie Mac) works best when you can put 20% down or when you need a second home or investment property.
If you put less than 20% down you will pay private mortgage insurance (PMI). The good news is that PMI can be removed once you reach 20% equity. That makes conventional loans more attractive for buyers who expect to build equity quickly or who plan to refinance later.
In 2026 the baseline conforming loan limit is $832,750 in most of the country, including Clark County. Homes above that amount usually require a jumbo loan, which comes with tighter credit and reserve requirements.
Start with eligibility. If you have a Certificate of Eligibility for a VA loan, run the numbers with and without the funding fee (or with the waiver if you qualify). Compare that total cost against FHA and conventional options using the same purchase price.
Next look at cash needed at closing. VA usually requires the least cash upfront. FHA sits in the middle. Conventional with 20% down requires the most cash but eliminates monthly insurance.
Finally consider how long you plan to stay in the home. The longer you stay, the more the absence of monthly mortgage insurance on a VA loan (or the ability to remove PMI on conventional) improves your overall cost.
I walk Las Vegas and Nellis-area buyers through this exact comparison every week so they can see the real monthly and long-term difference before they make an offer.
If you want a clear side-by-side of VA, FHA, and conventional numbers for a specific home price and your credit profile, I can run that for you.
Visit the VA Loans page or the First-Time Homebuyer page.
Call (702) 348-7573 or email jeff@wucinichgroup.com to start.
If you are VA-eligible, the VA loan is usually better because of zero down payment and no monthly mortgage insurance. If you are not VA-eligible, FHA is often the next strongest option for lower down payment and more flexible credit.
No. Veterans receiving VA compensation for a service-connected disability are exempt from the funding fee. This is one of the biggest cost advantages of the VA loan for many Nellis and Las Vegas veterans.
With zero down and no monthly mortgage insurance, many veterans can afford a higher purchase price than with FHA or conventional while keeping a similar monthly payment. Exact numbers depend on income, debts, and residual income guidelines.
Yes. Conventional loans can be used for second homes and investment properties. VA and FHA loans are limited to primary residences only.
Both require an appraisal. The VA appraisal also checks Minimum Property Requirements for safety and soundness. FHA has its own property condition standards. Neither replaces a full home inspection.