How this calculator works
The VA funding fee depends on your down payment and whether it's your first VA loan: 2.15% with under 5% down on first use, 3.3% on later use, falling to 1.5% at 5% down and 1.25% at 10%. Veterans with a service-connected disability are exempt. The fee is added to the loan, and the payment includes taxes and insurance but no PMI.
Worked example
With the example values below: Monthly payment, $2,966 (no PMI on VA loans). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Home price | $400,000 |
| Down payment | $0 |
| Interest rate | 6% |
| Loan term | 30 years |
| VA loan use | First use |
| Exempt from funding fee? | No |
| Property tax rate | 1.1% |
| Homeowners insurance / yr | $1,800 |
What makes VA loans different
VA loans are mortgages from private lenders that are partly guaranteed by the US Department of Veterans Affairs. The guarantee lets lenders offer terms that are hard to get elsewhere: no down payment, no monthly mortgage insurance, competitive rates and limits on the closing costs veterans can be charged.
Instead of PMI, most borrowers pay a one-time VA funding fee, which can be paid in cash or added to the loan. This calculator adds it to the loan and shows the full monthly payment with taxes and insurance.
VA funding fee rates
The fee is waived for veterans receiving VA compensation for a service-connected disability, surviving spouses receiving Dependency and Indemnity Compensation, and active-duty service members who've received a Purple Heart. Cash-out refinances and IRRRL streamline refinances have their own fee rates.
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to under 10% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Who is eligible
Eligibility generally depends on length and type of service: typically 90 continuous days of active duty in wartime, 181 days in peacetime, or six years in the National Guard or Reserves, plus surviving spouses in some cases. You'll need a Certificate of Eligibility, which most lenders can request for you.
Veterans with full entitlement have no VA loan limit, though lenders still need to approve your income and credit. VA underwriting looks at debt-to-income (41% is the usual guideline) and residual income, the money left each month after major expenses.
VA loans compared with other options
Compared with an FHA loan, a VA loan usually costs less because there's no ongoing mortgage insurance. Compared with a conventional loan with 20% down, VA can still win on rate. The property must be your primary residence and pass a VA appraisal. Use the mortgage comparison calculator to compare real offers side by side.
Frequently asked questions
How much is the VA funding fee?
For a purchase it's 2.15% of the loan on first use with less than 5% down, 3.3% on subsequent use, 1.5% with 5% to 10% down and 1.25% with 10% or more. Veterans receiving disability compensation are exempt.
Do VA loans require a down payment?
No. Eligible borrowers can finance 100% of the price. Putting 5% or more down lowers the funding fee and the payment.
Do VA loans have PMI?
No. VA loans don't charge monthly mortgage insurance. Most borrowers pay the one-time funding fee instead.
Is there a VA loan limit?
Not for veterans with full entitlement. Since 2020, they can borrow above the conforming limit with no down payment if a lender approves them. Veterans with partially used entitlement may need a down payment on larger loans.
What credit score do I need for a VA loan?
The VA doesn't set a minimum, but most lenders look for about 580 to 620. Higher scores still get better rates.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.