If you've served in the U.S. military and are buying a home in Bakersfield, this comparison should be quick. The VA loan is almost certainly the right choice. Zero down. No mortgage insurance. Rates below conventional. Assumable. The VA loan is one of the most powerful financial benefits in the American military compensation package, and it is significantly underused by veterans who don't realize what it's worth.
Dan comes from a family with military service and specializes in helping Kern County veterans use the VA benefit to its fullest. Here is the complete side-by-side so you can see exactly why VA almost always wins.
| Feature | VA Loan | FHA Loan |
|---|---|---|
| Down Payment | 0% (no down payment required) | 3.5% minimum |
| Mortgage Insurance | None — ever | MIP required for life of loan (if < 10% down) |
| Funding Fee | 1.25–3.3% (waived if 10%+ service-connected disability) | No funding fee |
| Loan Limit (Kern County) | No loan limit (full entitlement) | $524,225 single family |
| Minimum Credit Score | No official minimum (lenders typically 580–620) | 580 (most lenders: 620+) |
| Rate vs Market | Typically 0.25–0.50% below conventional | Competitive with conventional |
| Assumable by Future Buyer | Yes — by qualified veteran or civilian | Yes |
| Appraisal Standards | Strict (VA MPRs, but protects veteran) | Strict (HUD MPRs, similar standard) |
| PMI / MIP Monthly Cost | $0 | ~$140–$200/month on a $350k loan |
| Eligible Borrowers | Veterans, active duty, National Guard (with service), surviving spouses | Anyone with qualifying credit and income |
The Mortgage Insurance Math Changes Everything
The single biggest cost difference between VA and FHA is mortgage insurance. FHA requires MIP (mortgage insurance premium) for the life of the loan when you put less than 10% down. On a $350,000 loan, that's approximately $160–$200/month that never goes away unless you refinance.
A VA loan has no mortgage insurance. None. The VA's backing replaces the function of mortgage insurance, but the cost to the borrower is zero ongoing monthly charge. Over 30 years, that's $57,000–$72,000 in savings on a $350,000 loan, before interest.
The VA does charge a one-time funding fee (1.25–3.3% of the loan amount for most borrowers, added to the loan balance). But veterans with a service-connected disability rating of 10% or higher have the funding fee waived entirely. No funding fee. No mortgage insurance. Zero down. That's the deal.
When FHA Might Make Sense for a Veteran
This is a short section because the scenarios are narrow. FHA might be worth considering if the specific property has VA appraisal issues that make it ineligible for VA financing. VA appraisals are strict about property condition (minimum property requirements), and occasionally a property passes FHA standards but not VA's.
FHA might also make sense if the veteran has already used VA entitlement on another property and the remaining entitlement doesn't cover the purchase price without a significant down payment. In this case, FHA at 3.5% down might be easier than a VA loan with a large down payment required to cover the entitlement gap.
In most cases, these scenarios don't apply. The default assumption for any Bakersfield veteran should be: use the VA benefit.
Dan's Take: VA Is the Best Mortgage Product in America
I've said this to clients for 20 years and I'll say it plainly here. The VA home loan is the best mortgage product available to any eligible American. No private lender offers zero down, no mortgage insurance, and below-market rates in the same package. The VA benefit exists because of your service, and using it is not charity — it's compensation you earned.
The veterans who don't use VA loans typically fall into one of three categories: they didn't know they were eligible, they were steered away from VA by a lender who didn't understand VA underwriting, or they had a bad experience with VA appraisals and got spooked.
Dan specializes in VA loans specifically because Bakersfield has a large veteran population, and he's helped many veterans navigate VA entitlement, appraisal issues, and COE (Certificate of Eligibility) questions that other lenders handle poorly. If you served, call before you assume FHA is your only option.
If you're a veteran buying in Bakersfield, start with VA. The zero-down, zero-MIP combination beats FHA on total cost in virtually every scenario. Only consider FHA if the specific property has VA eligibility issues or your entitlement situation creates complications that make FHA a cleaner path.
Are you a veteran ready to use your VA benefit in Bakersfield? Call Dan for a VA pre-approval today.
Call Dan at (661) 342-9381. He'll run the numbers for your specific scenario in minutes.
People Also Ask
How do I verify my VA loan eligibility?
Can I use a VA loan more than once?
Does the VA loan limit affect how much I can borrow?
Is the VA funding fee always required?
Bottom Line
VA beats FHA for veterans on rate, down payment, and mortgage insurance in nearly every scenario. The funding fee is the only cost that VA adds, and it's waived for disabled veterans. If you're a Kern County veteran and haven't used your VA loan benefit, call Dan. You earned it.