VA Home Loan

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VA mortgage and conventional mortgage are two different types of home loans available to borrowers in New Jersey. They differ mainly in eligibility requirements, down payment, mortgage insurance, and interest rates. Here's a comparison of the key differences between them:


VA mortgages are exclusively available to eligible veterans, active-duty service members, and certain surviving spouses of military personnel. The Department of Veterans Affairs (VA) guarantees these loans.

Conventional mortgages are open to all borrowers and arent backed by any government agency. Instead, banks, credit unions, and other private lenders typically provide them.

Down payment:

VA mortgages usually do not require any down payment. Borrowers can finance up to 100% of the home's value.

Conventional mortgages generally require a down payment of at least 3% to 5% of the home's value. For borrowers who put down less than 20%, private mortgage insurance (PMI) is typically required.

Mortgage insurance:
VA mortgages do not require borrowers to pay ongoing monthly mortgage insurance premiums. However, a VA funding fee can be rolled into the loan or paid upfront. The fee varies based on the borrower's military service category and the times they have used a VA loan.

Conventional mortgages require borrowers who put down less than 20% to pay PMI. The premium amount varies based on the loan-to-value ratio and the borrower's credit score.

Credit requirements:

VA mortgages are more lenient when it comes to credit score requirements. Lenders might approve borrowers with lower credit scores, as the VA guarantee minimizes risk.

Conventional mortgages typically have stricter credit score requirements, and borrowers with lower credit scores may face higher interest rates.

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