VA Mortgage Calculator
Calculate VA loan payments including the VA funding fee. VA loans require no down payment and no PMI — see how much veterans and service members can save.
Monthly Payment (no PMI)
$2,259.8
Funding fee (2.15%): $7,525 financed into loan
Base Loan
$350,000
Funding Fee
$7,525
Total Loan
$357,525
PMI Savings vs Conv.
$73,500
About the VA Mortgage Calculator
A VA mortgage calculator computes the monthly payment, funding fee, and total cost for a VA home loan — the most powerful mortgage benefit available to US military veterans, active-duty service members, and surviving spouses. VA loans offer three unmatched advantages: no down payment required, no private mortgage insurance (PMI), and typically the lowest available interest rates for qualifying borrowers. The combination of these features means a veteran can buy a home with $0 down and pay less per month than a conventional buyer with 20% down at the same purchase price — while building full equity from day one. The only cost specific to VA loans is the funding fee (2.15% for first-time use with 0% down), which is financed into the loan amount rather than paid upfront in cash. Our free VA mortgage calculator models the complete loan structure including the funding fee, computes the monthly payment, and shows the estimated savings versus a conventional loan with PMI. Veterans with a service-connected disability rating of 10% or higher are exempt from the funding fee entirely — a significant additional benefit.
Formula
Funding fee = base loan × fee rate% (0% down first use: 2.15%) | Total loan = base + funding fee | Monthly = amortize total loan | PMI savings ≈ base loan × 0.7% / 12 annually
How It Works
VA loan structure: Step 1: Down payment = Home price × down%. Base loan = Home price - Down. Step 2: Funding fee = Base loan × fee rate%. Fee rate depends on usage and down payment: 0% down, first use = 2.15%; 0% down, subsequent use = 3.3%; 5-10% down = 1.5%; 10%+ down = 1.25%. Funding fee is financed into loan. Total loan = Base loan + Funding fee. Step 3: Monthly payment = amortize Total loan at interest rate for term years. Step 4: Savings vs conventional = PMI that would have been paid (estimated at 0.7% of base loan annually for 30 years, or until 80% LTV). Example: $350,000 home, 0% down, 6.5% rate, 30-year term, first use. Base loan = $350,000. Funding fee = $350,000 × 2.15% = $7,525. Total loan = $357,525. Monthly P&I = $357,525 × [0.005417 × (1.005417)^360] / [(1.005417)^360 - 1] = $2,261. No PMI. Conventional comparison (0% down): monthly P&I + PMI = approximately $2,332 + $204 PMI = $2,536. Monthly VA savings: $275. Annual savings: $3,300.
Tips & Best Practices
- ✓Veterans with any service-connected disability rating (even 10%) have the funding fee waived — for a $350,000 home loan, that is $7,525 in immediate savings. Always verify your eligibility for the funding fee exemption before closing.
- ✓VA entitlement: most veterans have full entitlement meaning no loan limit. Veterans with reduced entitlement (from a prior VA loan not paid off) may face limits without a down payment. A VA-specialized lender can calculate your exact entitlement situation.
- ✓VA Interest Rate Reduction Refinance Loan (IRRRL): the VA Streamline Refinance allows veterans to lower their rate with minimal paperwork, no appraisal, and no income documentation in most cases. No-cost IRRRL options exist where the lender covers fees in exchange for a slightly higher rate.
- ✓Occupancy requirement: VA loans require the veteran to intend to occupy the property as their primary residence. Purchasing rental properties or vacation homes with VA loans is not permitted — however, the veteran can convert to a rental after living there first.
- ✓Comparing VA versus conventional with down payment: if you have 20% down, a conventional loan at the same rate avoids the funding fee and has no PMI — making it mathematically equivalent or better depending on the rate spread. VA loans are most advantageous for 0-10% down scenarios.
- ✓VA appraisals are stricter than conventional: the VA appraiser checks minimum property requirements (MPRs) including structural soundness, working systems, and safety. Fixer-uppers often fail VA appraisal, making VA loans less suitable for as-is investment properties.
Who Uses This Calculator
Veterans and active-duty service members calculating their VA loan payment and comparing it to conventional financing. First-time military homebuyers understanding the VA funding fee and how it is financed. Veterans with disability ratings verifying their funding fee exemption savings. Military families deciding between 0% down VA loan versus saving for a conventional down payment. VA-specialized lenders and real estate agents illustrating VA loan benefits to veteran clients.
Optimised for: USA · Calculations run in your browser · No data stored
Frequently Asked Questions
What is the VA funding fee in 2025?
First-time VA use with 0% down: 2.15% of loan amount. Subsequent use: 3.3%. With 5-10% down: 1.5%. With 10%+ down: 1.25%. Veterans with a service-connected disability rating of 10%+ are exempt from the funding fee entirely.
Do VA loans require a down payment?
No — VA loans require no down payment for eligible veterans and active-duty service members. However, making a 5-10% down payment reduces the funding fee (from 2.15% to 1.5% or 1.25%), which can save money if you have the funds.
Do VA loans have mortgage insurance?
No — VA loans have no private mortgage insurance (PMI), saving borrowers $100-200/month on a typical loan. The one-time funding fee partially replaces this but is typically far cheaper than years of PMI payments.
Who qualifies for a VA loan?
Active-duty service members, veterans with honorable discharge (typically 90 days active wartime or 181 days peacetime service), National Guard/Reserve with 6+ years of service, and surviving spouses of veterans who died in service or from service-connected disability.
What is the VA loan limit?
Since 2020, there is no VA loan limit for eligible borrowers — you can borrow as much as a lender will approve. However, county conforming loan limits affect whether the VA will guarantee the full amount; jumbo VA loans are available but may require a down payment on the amount over the limit.