VA Loan vs Conventional Loan in Orlando: Which Is Better in 2026?

If you are a veteran or active duty service member buying a home in Orlando, you have a decision to make: use your VA loan benefit or go conventional. I get this question constantly, and the honest answer is almost always the same: if you qualify for a VA loan, use it.

But let me show you the actual numbers so you can see why, and the few situations where conventional might make sense.

The Side-by-Side Breakdown

Factor	VA Loan	Conventional Loan
Down Payment	0% required	3% to 20% typical
Private Mortgage Insurance (PMI)	None, ever	Required under 20% down
Funding Fee	1.25% to 3.3% (waived for disabled vets)	None
Minimum Credit Score	Typically 580-620	620-640 minimum
Interest Rate	Typically lower than conventional	Based on credit and LTV
Loan Limits	No limit with full entitlement	Conforming limit ($806,500 in 2026)
Seller Concessions	Up to 4% of purchase price	Up to 3% under 10% down

What This Means in Real Dollars on an Orlando Purchase

Let us use a $400,000 home in the Orlando area as an example.

Conventional Loan with 5% Down

• Down payment: $20,000
• PMI: approximately $150 to $200 per month until you reach 20% equity
• PMI total cost over 5 years: $9,000 to $12,000
• Total out of pocket before closing costs: $20,000 plus PMI

VA Loan with 0% Down

• Down payment: $0
• PMI: $0
• VA Funding Fee (first use, 2.15%): $8,600 rolled into the loan
• Total cash out of pocket before closing costs: $0

Even with the funding fee, you keep $20,000 in your pocket at closing and pay zero PMI for the life of the loan. That is a significant advantage, especially in a market where cash reserves matter.

When Conventional Might Actually Win

There are a few specific situations where conventional makes sense even if you have VA eligibility.

You Have a Service-Connected Disability Rating

If you have a VA disability rating, your VA funding fee is waived entirely. In that case the VA loan becomes even more dominant. But if you are comparing a VA loan with a 2.15% funding fee against a conventional loan where you already have 20% down and no PMI, the math gets closer. Run both scenarios.

You Are Buying a Condo

VA loans require the condo community to be on the VA approved list. In Orlando there are plenty of approved communities, but not all. If you fall in love with a condo that is not VA approved, conventional may be your path.

You Want to Preserve Your VA Entitlement

If you are buying a lower-priced investment property and want to keep your VA entitlement available for a larger primary residence purchase later, using conventional on the smaller purchase can make strategic sense. This is a planning conversation, not a blanket rule.

The Bottom Line for Orlando Veterans in 2026

Orlando home prices have held steady. Competition is still real. Going into a purchase with zero down payment and no PMI gives you a cash advantage and a lower monthly payment. For most veterans, that combination is hard to beat.

The question is not always which loan is technically better. It is which loan fits your specific situation, your goals, and your timeline. That is exactly the conversation I have with every veteran I work with before we pick a direction.