The core differences, before the details
Conventional loans aren't government-insured and generally want stronger credit and a larger down payment, though conventional programs allowing as little as 3% down do exist. FHA loans are government-insured, allowing lower credit scores and as little as 3.5% down, in exchange for mortgage insurance that behaves differently than conventional PMI. VA loans are available to eligible veterans and service members, allowing 0% down with no monthly mortgage insurance at all, offset by a one-time funding fee most borrowers pay.
FHA: built for accessibility, with a mortgage insurance tradeoff
FHA's lower down payment and credit requirements come with two layers of mortgage insurance: an upfront premium, usually financed into the loan, and an annual premium paid monthly for the life of the loan in most cases. Unlike conventional PMI, FHA's annual premium often doesn't cancel automatically once you build equity — it can require refinancing out of FHA entirely to remove it.
FHA loans aren't limited to first-time buyers, though the property generally has to be your primary residence, which matters if you're considering it for an investment purchase.
VA: no down payment, no monthly mortgage insurance, one funding fee
For eligible veterans and service members, VA loans remove two of the biggest barriers to buying — the down payment and monthly mortgage insurance — in exchange for a one-time funding fee that varies by down payment amount and whether it's a first or subsequent use of VA benefits. Veterans with a service-connected disability are typically exempt from the fee entirely.
Conventional: the flexible default, when it fits
Conventional financing tends to be the more flexible option once your credit and down payment support it — no government-program restrictions on property type or occupancy, and PMI (if it applies at all) cancels automatically once you reach 22% equity. For buyers who clear the credit and down payment bar comfortably, conventional is often the simplest path.
How to actually decide
The decision usually comes down to three questions: how much you have for a down payment, whether you're eligible for VA benefits, and how your credit profile compares across programs. It's rarely obvious from the outside which program nets the lowest true monthly cost once mortgage insurance is factored in — that's exactly the kind of comparison worth running with real numbers rather than assuming based on the headline down payment requirement alone.