Looking at a $400,000 home in Roseville? Start with two questions: what would it take to close, and what would it cost to live there each month? FHA, VA and conventional financing can answer those questions differently. Comparing both numbers helps you choose a useful next step.
The down payment is only the starting point
These are educational purchase-price calculations, not financing offers or confirmation that a particular home or borrower qualifies. FHA can allow 3.5% down for eligible borrowers. Eligible VA buyers may have a no-down-payment option. A conventional buyer can choose 20% down, but conventional financing does not always require that much.
CFPB: FHA loan basics and down payments (new tab)
| Example | Down payment | Base loan before financed fees |
|---|---|---|
| FHA with 3.5% down | $14,000 | $386,000 |
| Eligible VA purchase with no down payment | $0 | $400,000 |
| Conventional with 20% down | $80,000 | $320,000 |
These base balances do not include any financed FHA upfront mortgage insurance or VA funding fee. They are not monthly-payment or cash-to-close quotes. Loan eligibility, appraisal, entitlement where applicable, and lender requirements still matter.
VA funding fees depend on the buyer's circumstances, and some borrowers are exempt. Financing an applicable fee increases the starting loan balance. VA does not require monthly mortgage insurance.
VA: funding fees, exemptions and closing costs (new tab)
FHA has upfront and ongoing mortgage-insurance costs. Compare the actual loan amounts after any financed fees or premiums are accounted for.
CFPB: mortgage insurance costs (new tab)
Ask for the whole monthly cost
For each option, ask for principal and interest, property taxes, homeowners insurance, any mortgage insurance, HOA dues and special assessments. Check whether any of those bills are paid separately instead of through the mortgage. A principal-and-interest payment alone will not tell you what the home costs each month.
CFPB: reading a Loan Estimate and cash to close (new tab)
Use the property's actual tax and assessment information and an insurance quote for that address. Do not assume every Roseville home has the same costs. Then leave a separate household allowance for utilities, maintenance and repairs. Those expenses belong in your budget even when they do not appear in the lender's payment.
Count the money needed beyond the down payment
Closing costs, prepaid expenses and initial escrow deposits can add to the amount you need. Your earnest-money deposit and eligible credits may reduce the remaining amount due at closing. Ask for an itemized cash-to-close estimate so the same expense or deposit is not counted twice.
CFPB: reading a Loan Estimate and cash to close (new tab)
A no-down-payment loan does not automatically mean no cash needed. And a larger down payment is not automatically the best choice if it leaves you without a comfortable reserve. Ask to compare a smaller-down-payment conventional option too, including any mortgage insurance.
Make the comparison fair
Request estimates for the same home, intended closing date and loan term. Compare rate, APR, points, loan amount, total monthly housing costs and cash to close together. Ask which figures are verified and which are placeholders. Different down payments make these different scenarios, not a ranking of loan programs.
Bring the address and your comfort zone
Send me the home you are considering, the monthly budget you would feel comfortable with, and the cash you want to keep after closing. We can turn those into a side-by-side comparison with current pricing. You do not need to know which loan to choose before starting the conversation.
Educational information and hypothetical planning examples, not a rate quote, Loan Estimate, approval or commitment to lend. Actual terms require a current review of the borrower, property and loan.
Sources and further reading
Sources checked September 28, 2026. Program requirements and individual eligibility can change.