ποΈ VA Mortgage Calculator
Zero down, no PMI, and the exact VA funding fee.
Monthly payment, no PMI, ever
Estimates for planning only, not financial advice.
A VA loan lets eligible veterans and service members buy with zero down, no monthly mortgage insurance, and competitive rates. The trade is a one-time VA funding fee: 2.15 percent of the loan on first use with no down payment, 3.3 percent on later uses, waived entirely for disability-rated veterans. For most eligible buyers it is the cheapest way to buy a home.
How to Use This Calculator
Enter the home price and any down payment (zero is fine, that is the point of the program). Select whether this is your first VA loan or a subsequent use, enter your rate and term, and check the exemption box if you receive service-connected disability compensation. The calculator applies the correct funding fee from the VA rate table, adds it to your loan unless you choose to pay cash, and shows the full monthly payment with taxes and insurance.
Enter the Home Price and Down Payment. VA allows 0 percent down, but adding 5 or 10 percent lowers the funding fee.
Select First use or Subsequent use, and check the exemption box if you qualify for the funding fee waiver.
Enter APR and Term, choose Finance or Cash for the funding fee, add tax and insurance, and read your payment and the conventional-PMI comparison. Since VA underwriting also weighs residual income, check your debts first with our debt-to-income ratio calculator.
The VA Funding Fee Table
The fee schedule rewards down payments: crossing the 5 percent line on a subsequent-use loan cuts the fee from 3.3 percent to 1.5 percent, saving $7,200 on a $400,000 loan. The fee percentage always applies to the base loan amount before the fee itself is added, so financing it does not compound the fee. An IRRRL carries a 0.5 percent fee and cash-out refinances use the purchase table, but this calculator covers purchase loans.
VA Funding Fee Rates at a Glance
The fee percentage always applies to the base loan amount before the fee itself is added, so financing it does not compound the fee. These rates have been in effect since April 2023 and run through November 2031.
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% to less than 10% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
| Exempt (disability, eligible spouse, Purple Heart) | 0% | 0% |
The 5 percent line is the one to watch. On a subsequent-use loan, crossing it cuts the fee from 3.3 percent to 1.5 percent, which saves $7,200 on a $400,000 loan. If you are close, bringing a little extra cash to closing can be the highest-return money you ever spend.
Worked Example
Buy a $400,000 home with 0 percent down as a first-time VA user at 6.25 percent APR for 30 years, not exempt. Base loan = $400,000. Funding fee = $400,000 x 2.15% = $8,600, financed, so the total loan is $408,600. P&I on $408,600 at 6.25 percent for 30 years = $2,515.82 a month. PMI = $0. Add $400 tax and $150 insurance: total monthly payment = $3,065.82. For comparison, a conventional loan with 0 percent down at the same rate would add roughly $167 a month in PMI (about 0.5 percent a year), making the VA loan about $2,000 a year cheaper even after the one-time fee. If the buyer were exempt, the loan would be $400,000 flat and P&I would be $2,462.87.
VA vs FHA vs Conventional
Each program has a lane. Here is how they stack up on the points buyers actually feel.
| VA | FHA | Conventional | |
|---|---|---|---|
| Down payment | 0% | 3.5% | 3 to 20% |
| Monthly mortgage insurance | None, ever | MIP, usually for life | PMI until 78 to 80% LTV |
| Upfront cost | Funding fee 1.25 to 3.3% | 1.75% upfront MIP | None required |
| Credit flexibility | Forgiving, no official minimum | Down to 500 | 620+, score-priced PMI |
| Occupancy | Primary residence | Primary residence | Any |
| Standout perk | Assumable, no prepayment penalty | Low bar to entry | PMI drops off |
If you are VA-eligible, take the VA loan in the vast majority of cases. The one common exception is a buyer with 20 percent down and top-tier credit, where conventional pricing can edge ahead because there is no funding fee and no PMI at 80 percent LTV anyway. For everyone else, the math favors VA, usually by a wide margin.
VA vs Conventional: The Honest Math
VA wins on monthly cost for nearly every eligible buyer because zero PMI beats any conventional structure at low down payments. The one-time fee is the price: on a subsequent-use loan at 3.3 percent, that fee is real money, and a buyer with 20 percent down and strong credit may find conventional pricing competitive since there is no PMI at 80 percent LTV anyway. VA also brings softer benefits conventional loans do not: no prepayment penalty, assumable mortgages (a future buyer can take over your rate), and more forgiving credit guidelines. The break-even question is simple: divide the funding fee by the monthly PMI you avoid. At $8,600 in fee versus $167 a month in PMI, the VA loan pulls ahead after about 52 months and wins bigger every month after.
The Assumable Advantage
VA loans are assumable, which means a future buyer can take over your mortgage at your rate and terms, with VA and lender approval. In a world of 7 percent rates, selling a home with an assumable 5 percent VA loan is a genuine marketing edge that can lift your sale price.
The buyer must be VA-eligible for your entitlement to be released cleanly, though non-veterans can assume with your entitlement staying tied up in the loan. If you sell to another veteran who substitutes their own entitlement, yours is restored in full. It is a small clause with outsized value when rates rise, and one more reason the VA loan keeps paying you back years after closing.
Entitlement, Limits, and Reuse
Your Certificate of Eligibility (COE) proves to lenders that you qualify and shows your available entitlement. With full entitlement there is effectively no loan limit, which is why high-cost-area veterans can buy million-dollar homes with zero down. The limits only bite with partial entitlement, when another VA loan is still active. The benefit never expires and restores when the loan is paid off, so most veterans will use it several times across a lifetime of moves and relocations. Price the monthly payment with our mortgage payment calculator and the upfront cash with our closing cost estimator before you shop.
Estimates for planning only, not financial advice.
Frequently Asked Questions
What is the VA funding fee and how much is it?
The VA funding fee is a one-time charge. For purchase loans it is 2.15 percent of the loan with less than 5 percent down on first use, and 3.3 percent on subsequent use. Putting 5 percent down drops it to 1.5 percent, and 10 percent down drops it to 1.25 percent, the same for first and later use. These rates have been in effect since April 2023 and run through November 2031.
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation for a service-connected disability pay no funding fee at all, as do veterans entitled to compensation but receiving retirement or active-duty pay instead, surviving spouses receiving Dependency and Indemnity Compensation, and active-duty Purple Heart recipients. If your disability rating is still pending at closing, you can request a refund after it is confirmed. Check the exemption box in the calculator to see your payment with zero fee.
Do VA loans require a down payment or PMI?
No to both, and that is the core of the benefit. VA loans allow 0 percent down with no monthly private mortgage insurance, which is what makes them cheaper than conventional loans for most eligible buyers despite the one-time funding fee. On a $400,000 purchase, a conventional loan with 0 percent down would carry roughly $167 a month in PMI, while the VA loan carries zero. The funding fee is the trade: one upfront charge instead of monthly insurance forever.
Can the VA funding fee be financed into the loan?
Yes, and most borrowers do. The VA allows the funding fee to be added to the loan amount, which keeps cash needed at closing low. On a $400,000 loan, financing the 2.15 percent fee adds $8,600 to the balance. Paying it in cash at closing keeps the loan smaller and saves the interest on that $8,600, so the choice comes down to your cash reserves and how long you plan to keep the loan.
Are there VA loan limits?
With full entitlement, meaning you have never used the benefit or a prior VA loan was paid off and entitlement restored, there is no VA loan limit: the lender approves based on your income, credit, and the appraised value. With partial entitlement, such as an active VA loan on another home, the 2026 county limit of $832,750 in most counties caps how much you can borrow with no money down. High-cost counties allow up to $1,249,125.
Can I reuse my VA loan benefit?
Yes, the VA benefit is reusable for life. Once a VA loan is paid off or the home is sold, entitlement is restored and you can use it again, paying the subsequent-use funding fee rate. You can even hold two VA loans at once using second-tier entitlement, for example when relocating before selling the first home, as long as you meet the occupancy requirement that each VA-financed home be your primary residence.
Can I have two VA loans at the same time?
Yes, if you have enough remaining entitlement and you will occupy the new home as your primary residence. This is common during military relocations: you keep the first home, sometimes as a rental, and buy at the new duty station with second-tier entitlement. If the remaining entitlement does not cover the full new loan, you may need a down payment on the gap.
Can I use a VA loan to buy a rental property or vacation home?
Not directly. VA loans require you to occupy the home as your primary residence, usually within 60 days of closing. What many veterans do is buy as a primary residence, live there as required, and convert it to a rental later when they legitimately move. Buying a property you never intend to live in is not allowed under the program.
How do I check my VA loan entitlement?
Request your Certificate of Eligibility through the VA's eBenefits portal, or ask a VA-approved lender to pull it for you. The COE shows whether you have full entitlement, which means no loan limit, or partial entitlement with a dollar amount still available. Check it before you house hunt so you know whether county loan limits apply to your purchase.
Is the VA funding fee refundable?
Yes, in one specific case. If you close on the loan and later receive a VA disability rating with an effective date before your closing date, you can apply for a funding fee refund and the VA will return it. This usually happens when a disability claim was pending at closing. File the request through your lender or the VA regional loan center as soon as the rating is confirmed.