The zero down payment gets all the attention.
But the real reason VA loans keep winning for veterans and service members usually shows up on a spreadsheet most buyers never build: there is no monthly mortgage insurance.
On a conventional loan, borrowers who put down less than 20 percent typically pay private mortgage insurance, or PMI.
That's an extra line item on your statement every month, and it can run roughly 0.3 percent to 1.5 percent of the loan amount per year, depending on credit score and down payment.
On a $350,000 mortgage, that's real money — often $100 to $400 a month that builds you zero equity and buys you zero house.
They don't have a monthly mortgage insurance requirement at all.
Instead, most buyers pay a one-time VA funding fee at closing, which varies by down payment, first versus subsequent use, and whether the borrower has a service-connected disability.
Some veterans with a documented disability are exempt entirely.
A borrower putting 5 percent down on a $350,000 home with a conventional loan could pay PMI for years — until the loan balance drops enough, or the home appreciates enough, to hit that 20 percent threshold.
Meanwhile, the VA borrower skipped that monthly charge from day one.
VA loans are only available to eligible veterans, active-duty service members, and some surviving spouses.
The property has to be your primary residence.
Many condos don't qualify unless the project is VA-approved.
And sellers sometimes push back on VA offers because of appraisal and repair requirements, though that resistance has eased in many markets.
As of 2025, first-time users with zero down typically pay 2.15 percent of the loan amount, while those putting 10 percent or more down pay 1.25 percent.
On a $350,000 loan with nothing down, that's about $7,525 added to the loan or paid at closing.
Compare that to several years of PMI and the VA often still comes out ahead — but it depends on how long you stay in the home.
Here's where it gets interesting: VA loans are assumable.
That means a buyer who qualifies can take over your existing VA mortgage, potentially inheriting a rate far below today's market.
In a high-rate environment, that's a genuine selling point most homeowners never mention in the listing.
The catch is that you, the original veteran, may lose part of your entitlement until the loan is paid off.
That's a detail worth a call to a VA-approved lender before you commit.
None of this means a VA loan is automatically the cheapest option for every buyer.
Lender fees, rates, and closing costs still vary wildly, and shopping at least three lenders remains the single best move.
But if you're eligible and you've never compared a VA offer against a conventional one side by side, you may be leaving a few hundred dollars a month on the table.
Our take: the VA loan isn't a handout or a gimmick — it's a benefit you earned, and the PMI exemption alone makes it worth pricing out.
Final Thoughts
Get two quotes, one VA and one conventional, and let the numbers argue it out.