Which home loan is best VA or FHA?

If you you are eligible for VA the terms are clearly better. The interest rates are generally about the same, but on a purchase loan the VA requires no down payment while the FHA requires a 3.5% down payment. A 30 year VA loan has no monthly PMI, while a 30 year FHA does. With a $150K purchase the monthly PMI is $108 per month, and in April it will increase to $138.