Every homebuyer has a mission, whether it’s buying their first home, upgrading for more space, or finally planting roots after years of PCS moves. But how you fund that mission matters just as much as the home itself.
For Texas veterans and service members, the choice often comes down to two primary loan types: the VA and conventional loans. Both can help you get into a home, but only one is specifically designed for your military background.
This article breaks down the real differences —financial, strategic, and operational—so you can choose the right path for your next objective.
Your loan is your mission. Pick the right one
In the military, you don’t accept a mission without understanding the tools and tactics that will get the job done. The same logic applies to home loans.
VA loans and conventional loans offer different strengths. One isn’t “better” by default.
The right one depends on your credit, your goals, and how long you plan to stay in the home. Our job at Salute is to help you compare the two with zero pressure and total clarity. Let’s break it down.
Who qualifies for each loan type in Texas?
A VA loan is a benefit earned through service. If you’ve served 90+ days on active duty, 181+ days during peacetime, or six years in the National Guard or Reserves, you’re likely eligible. Surviving spouses of service members may also qualify.
A conventional loan, by contrast, is open to any qualified buyer. These are the standard loans you often hear about, which require 3–20% down and are frequently used by civilians or veterans who no longer wish to use their entitlement.
Some Texas veterans may qualify for both loan types, and that’s where comparison becomes mission-critical.
What are the financial differences?
Here’s where the VA loan typically shines:
- Down payment: VA loans offer 0% down financing. Conventional loans require a down payment of 3–20%, with the most favorable terms available at 20% or more.
- PMI (Private Mortgage Insurance): Conventional loans typically require PMI if the down payment is less than 20%. VA loans never require PMI, regardless of down payment.
- Rates: VA loans usually come with lower interest rates than conventional loans, saving you thousands over the life of the loan.
- VA funding fee: Although there’s no PMI, VA loans do include a one-time funding fee, which varies based on the service history and usage. It can be rolled into the loan.
Let’s say you’re buying a $350,000 home in Dallas. A VA loan might let you in with zero down and no monthly insurance costs.
A conventional loan with 5% down could require over $17,000 upfront, plus $150/month in PMI, until you reach 20% equity. That’s a significant difference for any buyer, especially first-time buyers.
How do credit requirements compare?
Conventional loans generally favor buyers with stronger credit. Most lenders require a minimum credit score of 620–660 for conventional loans, and better rates often require a score of 740 or higher.
VA loans are more flexible. At Salute, we accept scores as low as 580, with many of our borrowers qualifying between 620 and 680.
VA guidelines also allow for more leniency with past credit events, such as late payments or collections, especially if they were related to deployments or transitions out of service.
Bottom line: If your credit isn’t perfect, VA loans often provide a smoother path.
Which loan wins on flexibility and speed?
Conventional loans can move quickly, but only when buyers are well-qualified and lenders are well-prepared. In Texas’s hot market, that matters.
VA loans can be just as quick, especially when working with a veteran-led lender like Salute. Our teams are built for speed, and we don’t let bureaucracy slow you down.
The myth that VA loans take longer is outdated. In fact, the VA has strict turnaround standards for appraisals and clear processes for underwriters. When managed properly, a VA loan can close in 21–30 days, just like a conventional loan.
And VA loans aren’t limited by geographic zones. Whether you’re buying in rural Texas, Houston, or Hill Country, you can use your VA benefit without restrictions.
What’s the resale and refinance impact down the road?
Here’s where planning ahead helps:
- VA loans are assumable, meaning a future buyer (even a civilian) can take over your loan if rates go up, making your home more attractive down the line
- VA IRRRLs (Interest Rate Reduction Refinance Loans) allow easy refinancing if rates drop—no appraisal or income docs needed
- Conventional loans offer broader refi options, like cash-out refis for investors, but typically come with more paperwork and costs
If you plan to move in 3–5 years, a VA loan may save you more upfront. If you’re building long-term equity or aiming for rental conversions, conventional might win on flexibility.
Real-world example: Veteran in Texas choosing between VA and conventional
Let’s meet Jordan, a Marine veteran living in Fort Worth. He has a 650 credit score, $15,000 in savings, and is eyeing a $325,000 home.
- With a VA loan, Jordan qualifies for 0% down, pays no PMI, and gets a 6.1% rate. His monthly payment is around $2,100.
- With a conventional loan, he needs at least 5% down ($16,250), pays $130 in PMI monthly, and qualifies for a 6.5% rate. His monthly payment is closer to $2,350.
Jordan’s choice? VA loan. It saves him money up front, avoids PMI, and frees up cash for furniture and emergency reserves.
Now, if Jordan had a 780 credit score and a 25% down payment? The numbers could flip, depending on his long-term plans.
How Salute Mortgage helps you
Salute Mortgage isn’t just a VA lender. We’re a veteran-focused lender with a loan-only approach. That means we don’t automatically push VA loans. We guide you through both options, show you the real numbers, and help you decide which one serves your goal.
Wen VA is the right call, we move fast:
- No overlays: We follow VA rules, no extra credit restrictions
- Fast pre-qualifications: Often same-day, with exact numbers
- Text-before-call experience: You stay in control from start to finish
Texas veterans deserve clarity, not commission-driven advice. That’s why we exist.
The best loan is the one that serves your mission
Homeownership isn’t one-size-fits-all, and neither is financing. If you’re eligible for a VA loan, you’ve earned a massive advantage. But that doesn’t mean you should ignore conventional options.
With the right team, you can compare both clearly and choose based on facts, not sales talk.Curious which path fits your mission? Start your application right now to see your options.
