VA vs FHA in Florida. Which Loan Wins Depends on One Number

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, which for a 30-year FHA loan with 3.5% down 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.

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. Our full breakdown of PMI on FHA loans covers how FHA mortgage insurance is calculated if you want the full detail.

Credit Score Requirements

VA loans don't have a published minimum credit score set by the VA - individual lenders set their own, and most look for 580 to 620 as a practical floor. 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 might be your only option. Above 620, VA is almost always the financially stronger 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. And in a few niche situations involving credit history or property type, FHA's guidelines are more flexible.

For a full breakdown of VA loan eligibility and how the process works, see our VA loan Florida guide. If you want to compare what you qualify for on both programs, skip the line and schedule a call and we'll run the numbers for your specific situation.