For most eligible veterans buying a primary home, a VA loan is the best mortgage available: no down payment, no monthly mortgage insurance, and competitive rates. But there are real situations where a conventional loan is the better tool — and a good VA lender should tell you when you are in one. Here is how to decide.
If not — a second home or investment property — VA is not an option. Conventional (or Non-QM) is.
Read the video script
I’ve done thousands of VA loans — so you might be surprised that sometimes I tell veterans to go conventional. I’m Shirley Mueller.
First question: will you live there? If it’s a second home or a rental, VA isn’t an option. Second: are you putting 20% down? Then conventional has no mortgage insurance and no funding fee. Third: do you get VA disability compensation? If so, your funding fee is zero — and VA usually wins.
And if you’ll want to use your VA benefit again soon, going conventional now can keep it free.
I’ll run both side by side on the same day, same house — and you pick.
Side by side
| VA | Conventional | |
|---|---|---|
| Minimum down payment | $0 (full entitlement) | As little as 3%–5% |
| Monthly mortgage insurance | None | Yes with less than 20% down; can be removed later |
| Upfront government fee | Funding fee 0.5%–3.3% (waived with VA disability comp) | None |
| Property types | Primary residence only (1–4 units) | Primary, second home or investment |
| Credit flexibility | More flexible; residual-income based | Typically stricter; pricing tied closely to score |
| Assumable by a future buyer | Yes | Generally no |
When conventional is the better choice
- Second homes and investment property. VA loans must be for a home you live in. Conventional loans are not.
- 20% or more down and you pay the funding fee. At 20% down, conventional has no PMI and no funding fee; the VA funding fee may make VA more expensive up front.
- Saving your entitlement. If you expect to use VA again soon — a PCS move, or a future build — using conventional now can keep your full VA entitlement available.
- A non-veteran co-borrower who isn’t your spouse. VA joint loans are possible but often require a down payment; conventional may be simpler.
When VA is clearly better
Little or no down payment, a credit history with bumps, or a VA disability rating (no funding fee) — VA almost always wins. It also gives a future buyer the option to assume your rate, which can make your home easier to sell.
What veterans say about working with Shirley
4.9 95 Google reviews“Shirley and her team were an absolute pleasure to work with. They helped my wife and I obtain a VA Construction Loan which gave us the ability to build our dream home.”
April 2026 · Google review
“Great experience with them. Shirley and her team are awesome. They do everything to make sure it is a smooth process for a VA loan. I read a bunch of great reviews about them and went with them because of that. I highly recommend using Shirley at Cross Country Mortgage.”
April 2026 · Google review
“Ms. Shirley and her team are the BEST. Clear communication, specialized VA knowledge, responsiveness, and reduced stress. Thank you all for your help .”
April 2026 · Google review
Real Google reviews of VALoansTexas.com, shown word for word. Team members named in reviews were part of Shirley’s team at the time. Read more reviews →
VA vs. Conventional Loan FAQ
Is a VA loan better than a conventional loan?
For most eligible veterans buying a primary home with little down, yes: no down payment, no monthly mortgage insurance and flexible credit. Conventional can be better for second homes, investment property, or buyers putting 20% or more down who would pay the VA funding fee.
Can a veteran get a conventional loan instead of VA?
Yes. Using VA is optional, and choosing conventional can preserve your VA entitlement for a later purchase.
Can I use a VA loan for an investment property?
No. VA loans are for primary residences, though you can buy a 2–4 unit property with VA if you live in one unit.
