VA Loan vs. Conventional: What’s Better for Military Families?

Choosing the Right Path to Homeownership 

Buying a home is one of the biggest financial moves you'll make—especially during a PCS move when timelines are tight and stress levels are high.

For military families, one major decision early in the process is whether to use a VA loan or a conventional mortgage. 

Each option has its advantages. But depending on your goals, budget, and timeline, one may clearly fit better than the other. 

Let's break it down so you can choose with confidence. 

1. VA Loan Basics: Benefits Built for Service Members 

   
   

VA loans are a powerful benefit earned through military service. Here's what sets them apart: 

• Zero Down Payment: Buy a home without needing a large upfront sum. 

• No Private Mortgage Insurance (PMI): Unlike conventional loans with less than 20% down, VA loans don’t require PMI, saving you hundreds monthly. 

• Competitive Interest Rates: VA loans often offer better rates compared to conventional mortgages. 

• Flexible Credit Requirements: Credit score standards are often more forgiving. 

• Limits on Closing Costs: Sellers can cover some or all of your closing costs, easing your out-of-pocket expenses. 

If you're looking to maximize buying power and minimize upfront costs, a VA loan is tough to beat. 

2. Conventional Loan Basics: Flexibility for the Right Situation 

   
   

Conventional loans—those not backed by the government—can offer some strategic advantages too, especially if: 

• You Have Strong Credit and a Large Down Payment: This could qualify you for ultra-low rates. 

• You’re Buying a Higher-Priced Home: VA loans have county-specific limits. If you're going above that, a conventional loan might make more sense. 

• You Want to Skip the VA Funding Fee: VA loans usually come with a funding fee (which can be rolled into the loan). Conventional loans don’t have this fee. 

• You're Buying an Investment Property: VA loans are only for primary residences—you can’t use one for a rental or second home (unless you’re going to live in the property for at least one year after purchase). 

Conventional loans offer more flexibility in some scenarios—but usually at the cost of needing more cash upfront. 

3. Head-to-Head: Which One Makes More Sense? 

Feature	VA Loan	Conventional Loan
Down Payment	None required	Typically 3-20%
PMI Requirement	No	Yes if <20% down
Interest Rates	Lower on average	Depends on credit profile
Credit Flexibility	More forgiving	Stricter standards
Closing Costs	Seller contributions allowed	Seller contributions capped lower
Funding Fee	Yes (unless exempt)	No
Property Type	Primary residence only	Primary, secondary, investment

4. Special PCS Considerations 

   
   

During a PCS move, time and flexibility are crucial. VA loans are often easier for: 

• Remote Closings: VA-savvy lenders are used to military timelines and remote logistics. 

• Low Upfront Costs: Saves cash for moving expenses. 

• Quick Occupancy Requirements: VA loans require you to occupy the home within 60 days—which aligns well with PCS schedules. 

However, if you’re investing in a rental property as part of your long-term financial plan after a PCS, a conventional loan may be the better option. 

VA Loan vs. Conventional Mortgage: It’s About Strategy, Not Just Rates 

Choosing between a VA loan and a conventional mortgage isn't just about "which is cheaper." It's about aligning the loan with your PCS timeline, financial goals, and homeownership plans. 

At Salvato & Co., we’ve walked this road ourselves. As military families, we understand the hidden stresses behind buying a home on the move.

If you’re planning a PCS to or from Maryland, let's map out the smartest strategy for your situation. 

➡️ Schedule a free, no-obligation consultation to discuss your loan options and PCS move plan.