If you're an eligible veteran or active service member buying a home in Florida, you may have a choice between two low or no down payment loan programs: a VA loan and an FHA loan. Both are solid options. The one that works better for your situation depends on a few specific numbers. Here's a direct comparison across the factors that matter most.
Down Payment
VA loans require no down payment. Zero. You can finance 100% of the purchase price if the home appraises for the full amount. FHA loans require 3.5% down if your credit score is 580 or above, or 10% down if your score is between 500 and 579. On a $350,000 home, that's $12,250 to $35,000 that you don't have to save if you go VA. For most buyers, that difference alone makes VA the clear winner when it's available.
Mortgage Insurance
This is the other major financial difference. VA loans have no monthly mortgage insurance. None. FHA loans require mortgage insurance for the life of the loan in most cases. For a 30-year FHA loan with 3.5% down, that runs approximately 0.55% of the loan amount annually. On a $350,000 loan, that's about $160 per month that VA borrowers don't pay. Our full breakdown of PMI on FHA loans covers how FHA mortgage insurance is calculated if you want the full detail.
FHA does charge an upfront mortgage insurance premium of 1.75% at closing, which most borrowers roll into the loan. VA charges a funding fee (1.4% to 3.6%, depending on service history and prior VA loan use), but veterans with a service-connected disability are exempt entirely.
Credit Score Requirements
VA loans don't have a published minimum credit score set by the VA itself. Individual lenders set their own floors, and most look for 580 to 620 as a practical minimum. FHA loans go as low as 500 with 10% down, or 580 with 3.5% down. If your credit is below 580, FHA with a larger down payment may be your only realistic option. Above 620, VA is almost always the stronger financial choice when you qualify.
When FHA Makes More Sense
There are situations where FHA is the right call even for eligible veterans. If you've already used your VA entitlement and haven't restored it, FHA may be easier to access. Some condo developments in Florida aren't VA-approved but are FHA-approved, which limits VA use in certain buildings. In a few niche situations involving credit history or property type, FHA's guidelines are more flexible.
Not sure which one fits your situation?
We'll run the numbers on both programs with your actual file so you can see the real difference before you decide.
For a full breakdown of VA loan eligibility and how the process works in Florida, see our VA loan Florida guide. If you want to compare what you qualify for on both programs, schedule a call and we'll run the numbers for your specific situation. There's no one-size-fits-all answer here, but for most eligible veterans in Florida, the VA loan wins on nearly every financial metric.
