Four loans, one screen

FHA vs Conventional vs VA vs USDA: Compare Four Loans Side by Side

Tick the loans you might qualify for and compare them side by side. Free, no sign-up, and nothing you type leaves your browser.

Defaults are typical Maricopa figures — change every one of them. Every situation differs: ask Mike or your lender before you decide anything.

Shared numbers

Swipe sideways to see the other columns →

Where these programme figures come from, with their dates. FHA: upfront MIP 1.75% and annual MIP 0.50–0.55% by loan-to-value, with the 11-year versus life-of-loan split at the 90% mark — HUD Mortgagee Letter 2023-05, effective for case numbers endorsed on or after 20 March 2023. Minimum 3.5% down at a 580 score, 10% between 500 and 579, per HUD Handbook 4000.1. VA: funding fee 1.25–3.3% by down payment and prior use, exempt with service-connected disability compensation, seller concessions capped at 4% — va.gov, rates effective 7 April 2023, page last updated 15 January 2026. USDA: 1% upfront guarantee fee, 0.35% annual fee for the life of the loan, household income within 115% of the area median, seller contributions capped at 6% — USDA Guaranteed Loan Program overview, January 2026. Conventional: 3% minimum on some programmes (Fannie Mae 97% LTV / HomeReady), 5% more typical; PMI is a rate you type because it is priced by your credit and loan-to-value, and it must be cancelled on request at 80% of original value and automatically at 78% — CFPB, reviewed 28 August 2026. Property tax default 0.69% of value is a Maricopa-area typical figure as at September 2026 and varies by zip. Estimates only, not a loan offer — ask Mike or your lender.

More free tools: all of Mike’s calculators · seller net sheet · what it costs to sell.

Read this before you compare

FHA vs conventional: what actually changes

A bigger down payment does not remove FHA mortgage insurance. FHA charges 1.75% up front plus an annual MIP no matter how much you put down — putting 10% or more down only shortens that annual MIP to 11 years instead of the life of the loan. Conventional at 20% down has no mortgage insurance at all. The calculator above puts your own numbers side by side so you can see what that actually costs.

And two more that most buyers never get told about: VA and USDA both allow zero down. VA has no monthly mortgage insurance at all; USDA is limited by the address, not the town. Tick whichever apply to you in the calculator above.

FHA mortgage insurance never fully goes away because of your down payment

Every FHA loan carries an upfront mortgage insurance premium of 1.75% of the base loan, normally financed into the loan, plus an annual MIP collected monthly. That annual MIP is charged whether you put down 3.5% or 25%.

What your down payment changes is how long you pay it:

  • Less than 10% down — annual MIP for the life of the loan.
  • 10% or more down — annual MIP for 11 years, then it stops.

That 10% line is a hard edge. 9.9% down and 10.1% down are two very different loans.

Conventional mortgage insurance does go away — and at 20% down it never starts

Conventional PMI applies when you put down less than 20%. It is not permanent: once your scheduled balance reaches 78% of the original price the lender must cancel it automatically, and you can request cancellation at 80%.

At 20% down or more there is no mortgage insurance at all, upfront or monthly.

So the crossover is the real question: FHA often wins on rate and on qualifying, conventional often wins on what you pay after year one. The calculator above is there to show you which one wins for your numbers.

VA removes the mortgage insurance question entirely

A VA-backed purchase loan allows zero down and charges no monthly mortgage insurance at all — not for a term, not for the life of the loan, never. What it charges instead is a one-time funding fee, normally financed into the loan, running from 1.25% to 3.3% depending on your down payment and whether you have used the benefit before. Veterans receiving compensation for a service-connected disability pay no funding fee.

The catch is not cost, it is eligibility: you need a Certificate of Eligibility. Seller concessions are also capped at 4% of the home’s reasonable value on a VA loan, which matters in a market where builders are paying concessions. Check your eligibility at va.gov. VA funding-fee rates effective 7 April 2023; VA page last updated 15 January 2026.

USDA is zero down too — but the map decides, not the town

A USDA guaranteed loan is 100% financing based on appraised value, with a 1% upfront guarantee fee and a 0.35% annual fee that runs for the life of the loan. Household income must sit within 115% of the area median, and seller contributions are capped at 6% of the sales price.

The part that catches people out is geography. Eligibility is decided address by address on the USDA map, so two homes a few streets apart can differ, and the boundaries get redrawn. Do not assume a subdivision qualifies because a neighbouring one did — check the actual address on the USDA eligibility map, and ask Mike which local builders are currently inside the lines. USDA Guaranteed Loan Program overview, January 2026.

The trap: a builder’s promotional rate is often FHA-only

New-build incentives in Maricopa are frequently tied to the builder’s preferred lender, and the headline rate is often available only on an FHA loan. That can genuinely be the better deal — a large enough rate buy-down can outrun the mortgage insurance. It can also quietly cost more over the years you actually plan to stay. Run both. Use the same price and the same taxes in each column, change only the loan.

Mike Millet, REALTOR® — Living in Maricopa

Built by Mike Millet

REALTOR® · Maricopa, Arizona

I am an Arizona native and an Army Veteran, and most of my buyers are relocating here from out of state. I built this because the FHA mortgage-insurance rules catch almost everyone out, and you should see that before a lender tells you. More about me, or ask me anything.

Estimates only — not a loan offer

I am a REALTOR®, not a licensed mortgage loan originator. This calculator produces estimates for planning and comparison only. It is not a loan offer, not a rate quote, not a commitment to lend, and not mortgage advice. Every rate on this page is a number you typed — nothing here is fetched from a lender and nothing here reflects a rate available to you today.

Real numbers depend on credit, debt-to-income, loan limits, property type, occupancy, appraisal and the pricing your lender is offering that day. Mortgage insurance rates, FHA program rules and cancellation rules change. Confirm every figure with a licensed lender before you make a decision or write an offer.

Want that conversation? I will connect you with a lender who will price both scenarios properly — Josh Baratta is one of the loan officers I work with, and this comparison is exactly the conversation he is good at. Reach out here, see my lending partners on the buyers page, or bring me the numbers you get from any lender and I will read them with you.

Eligibility for VA and USDA loans is decided by those agencies, not by this page and not by me. VA eligibility runs through a Certificate of Eligibility; USDA eligibility depends on the property address and your household income and is checked on the USDA eligibility map. Programme fees and rules change — every figure on this page is dated where it is stated.

Questions I get every week
Does a bigger down payment remove FHA mortgage insurance?

No. FHA charges a 1.75% upfront mortgage insurance premium and an annual MIP regardless of down payment. Putting 10% or more down shortens the annual MIP to 11 years instead of the life of the loan; it does not eliminate it. A conventional loan at 20% down has no mortgage insurance at all.

When does conventional PMI come off?

Conventional PMI cancels automatically when the scheduled loan balance reaches 78% of the home's original value, and can be cancelled by request at 80%. It is based on the original amortization schedule. At 20% down or more, PMI never applies.

Is an FHA loan always cheaper than conventional?

Not always. FHA often carries a lower note rate and is easier to qualify for, which can make it cheaper month to month. Conventional frequently costs less over five to ten years once mortgage insurance is included, especially with 10 to 20 percent down. The outcome depends on the rate spread, the down payment and how long the buyer stays in the home.

Why does a builder's promotional rate usually require their lender?

Builders fund rate buy-downs through an affiliated lender, so the promotional pricing is generally not portable to an outside lender. A buyer may use any lender, but may lose the incentive. The incentive should be priced against the loan terms rather than assumed to be the better deal.

Are these calculator numbers a loan offer?

No. The calculator produces estimates for planning and comparison only. It is not a loan offer, rate quote or commitment to lend. All rates are entered by the user and none are fetched from a lender. Buyers should obtain a written loan estimate from a licensed lender.

Do VA loans really require no down payment?

Yes. A VA-backed purchase loan allows 100% financing with no down payment and no monthly mortgage insurance. What it does carry is a one-time funding fee — 1.25% to 3.3% of the loan depending on your down payment and whether you have used the benefit before — and that fee is normally financed into the loan. Veterans receiving compensation for a service-connected disability are exempt from it entirely. You need a Certificate of Eligibility, which you can request through va.gov. VA funding-fee rates effective 7 April 2023; VA page last updated 15 January 2026.

Can I use a USDA loan in Maricopa, Arizona?

It depends on the exact address, not on the town. A USDA guaranteed loan requires the property to sit inside an eligible rural area, and those boundaries are drawn address by address on the USDA eligibility map. Household income also has to be within 115% of the area median. Some newer communities in and around Maricopa have fallen inside eligible boundaries and others have not, and the lines get redrawn — so check the specific address rather than assuming. USDA is zero down, with a 1% upfront guarantee fee and a 0.35% annual fee that runs for the life of the loan, per the USDA Guaranteed Loan Program overview, January 2026.

Which loan needs the least cash if my savings are thin?

Usually whichever one asks for the least at the closing table, which is what the cash-to-close row on this page is for. VA and USDA both allow zero down, which is why they are flagged. If you qualify for neither, FHA asks a minimum of 3.5% with a 580 credit score, and some conventional programs go as low as 3% although 5% is more typical. Closing costs sit on top of the down payment either way — and a seller or builder credit can absorb part of them, so there is a field for that above.