KevinParsells.net · Consumer education
A framework comparing FHA, VA-backed and conventional options by eligibility, cash to close and loan features—not a single advertised rate.
General education only—not a mortgage application, loan offer, rate quote, recommendation, approval, or statement of licensing availability.
Cornerstone First Mortgage lists Kevin W. Parsells on its official professional profile. Next Level Coaching is a separate coaching and education platform.
For a mortgage application or individualized lending process, use only Kevin’s official Cornerstone First Mortgage profile.
FHA, VA-backed and conventional mortgages differ. FHA loans are made by private lenders and insured by the Federal Housing Administration. VA-backed loans have service-based eligibility and typically begin with a Certificate of Eligibility review. A conventional loan is not part of a specific government program. First identify which category may fit your household, property and purpose; lender underwriting determines approval and pricing.
FHA is a government-insured option delivered through private lenders. The CFPB says FHA loans may allow down payments as low as 3.5% and may accommodate lower credit scores than most conventional loans, while also requiring mortgage insurance. FHA loan limits vary by county. These features can help when cash or credit is a constraint, but do not make FHA automatically lower cost. Final eligibility, documentation, insurance charges and the offer need lender review.
VA-backed financing is for eligible Veterans, service members and certain surviving spouses. The VA says borrowers need the credit and income for the amount borrowed; a Certificate of Eligibility helps document program eligibility. A VA-backed purchase loan may be made with no down payment for eligible borrowers, but the transaction can still have costs. A one-time VA funding fee may apply, although some borrowers are exempt; other closing costs and lender charges also need review. Program eligibility is not approval.
Conventional means the loan is not part of a government program. Many are conforming loans with Fannie Mae or Freddie Mac rules; non-conforming loans can have lender-specific requirements. A 20% down payment is not universally required, but the CFPB notes that mortgage insurance is typically needed below 20%. Compare the down payment, mortgage insurance, debt obligations and property details together rather than assuming a conventional option is preferable.
Start with occupancy, price range, funds, credit, income documents and VA eligibility. Ask an appropriately licensed representative which categories may be available for the property and state. With specific offers, request and review standardized Loan Estimates from more than one lender. Compare loan type, rate behavior, points, mortgage insurance or funding fee treatment, closing costs, cash to close and projected payment. Focus on the complete written offer and your goals, not a headline rate.
The next step
Optional reply request
Share only the contact details needed for the team to respond. This stores a reply request; it is not a mortgage application, a financial-document upload, or a marketing subscription.
Questions, answered clearly
No. VA-backed home loans have service-based eligibility for Veterans, service members and certain surviving spouses. The VA’s Certificate of Eligibility process helps document eligibility, but the lender still evaluates credit, income and property.
No. The CFPB notes that FHA can cost less with lower credit or a smaller down payment, while conventional may cost less with good credit and a medium down payment. FHA mortgage insurance is required. Compare written Loan Estimates.
Not necessarily. Conventional requirements vary by lender and loan type. The CFPB says mortgage insurance is typically required under 20%, so compare cash retained, payment, mortgage insurance and loan costs—not only the down payment.