VA Loan Calculator
Calculate your VA loan monthly payment including the VA funding fee, property taxes, and homeowners insurance. Compare your VA loan to a conventional mortgage to see how much you can save with your military benefits — no down payment, no PMI, and competitive interest rates.
Loan Details
VA loans allow 0% down payment
Service Details
Monthly Payment
$2,560
Total monthly payment (PITI)
VA Funding Fee
2.15%
Fee Rate
$7,525
Fee Amount
Payment Breakdown
VA Loan vs Conventional Mortgage Comparison
| Feature | VA Loan | Conventional (20% down) |
|---|---|---|
| Down Payment | $0 | $70,000 |
| Funding Fee / PMI | $7,525 (one-time) | $0/mo for 0 mo |
| Monthly Payment | $2,560 | $2,141 |
| Estimated Total Cost | $921,675 | $840,643 |
How to Use This VA Loan Calculator
Step-by-Step Guide
Enter the Home Price
Input the purchase price of the home you are considering. VA loans have no maximum loan amount for borrowers with full entitlement, so you can enter any amount your lender will approve.
Set Your Down Payment
VA loans allow zero down payment, but putting money down reduces your funding fee significantly. Even 5% down drops the fee from 2.15% to 1.5% for first-time users.
Select Your Service Details
Toggle whether this is your first VA loan use, if you have a disability exemption, and whether you serve in the Reserves or National Guard. These affect your funding fee rate.
Review Your Results
See your total monthly payment, funding fee breakdown, and how your VA loan compares to a conventional mortgage with 20% down and PMI.
Understanding Your VA Loan Payment
Your VA loan payment consists of principal, interest, property taxes, and homeowners insurance (PITI). Unlike conventional loans, VA loans never require Private Mortgage Insurance (PMI), even with zero down payment. This is one of the most significant financial benefits of the VA loan program.
The VA funding fee is a one-time cost that can be paid at closing or financed into the loan. While financing the fee increases your loan amount and monthly payment slightly, it preserves your cash reserves. Veterans with a service-connected disability rating of 10% or higher are completely exempt from the funding fee, saving thousands of dollars.
VA loans typically offer interest rates 0.25% to 0.50% lower than conventional mortgages because the VA guarantee reduces the risk to lenders. Combined with zero down payment and no PMI, this makes VA loans one of the most powerful home financing tools available to service members and veterans.
What Is a VA Loan?
A VA loan is a mortgage loan program established by the United States Department of Veterans Affairs (VA) to help eligible service members, veterans, and surviving spouses purchase homes. The program was created as part of the Servicemen's Readjustment Act of 1944 (commonly known as the GI Bill) and has helped more than 25 million veterans achieve homeownership since its inception.
Unlike most mortgage programs, VA loans are not made directly by the government. Instead, private lenders such as banks, credit unions, and mortgage companies issue VA loans, while the Department of Veterans Affairs provides a guarantee to the lender. This guarantee typically covers 25% of the loan amount, which significantly reduces the lender's risk and enables them to offer more favorable terms to borrowers.
The key benefits of VA loans include zero down payment requirement (up to the conforming loan limit for borrowers with full entitlement), no Private Mortgage Insurance (PMI) regardless of the down payment amount, competitive interest rates that are typically lower than conventional loans, limited closing costs that can be paid by the seller, and no prepayment penalties. These benefits make VA loans one of the most financially advantageous mortgage products available in the United States.
VA loans can be used to purchase single-family homes, condominiums (in VA-approved projects), multi-unit properties (up to four units if the borrower occupies one), manufactured homes on permanent foundations, and to build new construction. VA loans can also be used to refinance an existing mortgage through either the Interest Rate Reduction Refinance Loan (IRRRL, also known as the VA Streamline Refinance) or a VA cash-out refinance.
VA Funding Fee Explained
The VA funding fee is a one-time charge assessed on VA-guaranteed home loans that helps offset the cost of the VA loan program to taxpayers. Because the VA loan program does not require monthly mortgage insurance, the funding fee serves as an alternative way to sustain the program financially. The fee is expressed as a percentage of the loan amount and can either be paid at closing or financed into the loan.
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% to 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Reserve and National Guard members pay an additional 0.15% on first-use rates with less than 5% down. The funding fee is completely waived for veterans receiving VA disability compensation, veterans who would be eligible for disability compensation but receive retirement or active-duty pay instead, surviving spouses of veterans who died in service or from service-connected disabilities, and Purple Heart recipients serving on active duty.
Many veterans choose to finance the funding fee into the loan rather than paying it upfront. While this increases the total loan amount and slightly raises the monthly payment, it allows the veteran to preserve their cash reserves for moving expenses, home repairs, or emergency savings. For example, on a $350,000 home with no down payment, a first-time user's 2.15% funding fee would be $7,525. Financing this into the loan on a 30-year term at 6% adds approximately $45 to the monthly payment.
VA Loan Eligibility
Eligibility for a VA loan is determined by your service history, duty status, and character of discharge. The VA has established minimum active-duty service requirements that vary based on when you served. To prove eligibility, you must obtain a Certificate of Eligibility (COE) from the VA, which verifies your entitlement to the VA loan benefit.
Active-Duty Service Members
Currently serving active-duty members need 90 continuous days of active service. If you are currently serving, you are eligible with a statement of service from your commanding officer.
Veterans
Veterans must have served 90 consecutive days during wartime, 181 days during peacetime, or completed six years in the National Guard or Reserves. Must have an other-than-dishonorable discharge.
National Guard & Reserves
Guard and Reserve members need six years of service in the Selected Reserve or National Guard, or 90 days of active-duty service (including activation under federal orders for Gulf War-era service).
Surviving Spouses
Un-remarried surviving spouses of veterans who died in service, from a service-connected disability, or while receiving VA disability compensation may be eligible for a VA loan with no funding fee.
VA Loan vs Conventional vs FHA Comparison
| Feature | VA Loan | Conventional | FHA |
|---|---|---|---|
| Min Down Payment | 0% | 3-5% | 3.5% |
| Mortgage Insurance | None | PMI until 80% LTV | MIP for life of loan* |
| Upfront Fee | Funding fee (1.25-3.3%) | None | 1.75% MIP |
| Credit Score | No VA minimum** | 620-680+ | 580+ (3.5% down) |
| Interest Rates | Lowest | Moderate | Moderate |
| Eligibility | Military service | Anyone | Anyone |
*FHA MIP is for the life of the loan with less than 10% down. With 10%+ down, MIP is removed after 11 years. **The VA does not set a minimum credit score, but most lenders require 620+.
Tips for Maximizing Your VA Loan Benefits
Consider a Down Payment to Reduce the Funding Fee
Even though VA loans allow zero down, putting 5% or 10% down significantly reduces the funding fee. On a $350,000 home, the difference between 0% down (2.15% fee = $7,525) and 5% down (1.5% fee = $4,988) saves you $2,537 in fees alone, plus reduces your monthly payment.
Check Your Disability Rating
If you have any service-connected disability rated at 10% or higher by the VA, you are exempt from the funding fee entirely. On a $350,000 loan, this exemption saves you $7,525 or more. If you believe you have a service-connected condition, file a disability claim before closing on your VA loan.
Shop Multiple Lenders
VA loan interest rates and lender fees vary significantly between lenders. Getting quotes from at least three VA-approved lenders can save you thousands over the life of the loan. Even a 0.25% rate difference on a $350,000 loan saves roughly $55 per month or nearly $20,000 over 30 years.
Negotiate Seller Concessions
VA loans allow the seller to pay up to 4% of the purchase price in concessions toward your closing costs, prepaid items, and even the funding fee. This is more than FHA (up to 6% but excluding the upfront MIP) and can dramatically reduce your out-of-pocket costs at closing.
Frequently Asked Questions
Who is eligible for a VA loan?
VA loans are available to active-duty service members, veterans, National Guard and Reserve members, and certain surviving spouses. Active-duty members typically need 90 continuous days of service during wartime or 181 days during peacetime. Veterans need to meet minimum service requirements based on when they served. National Guard and Reserve members generally need six years of service or 90 days of active-duty service during wartime. Surviving spouses of veterans who died in service or from a service-connected disability may also qualify. All applicants must obtain a Certificate of Eligibility (COE) from the VA to verify their entitlement.
What is the VA funding fee and can it be waived?
The VA funding fee is a one-time payment that helps the VA guarantee loans without requiring PMI or a down payment. The fee ranges from 1.25% to 3.3% of the loan amount depending on your down payment, whether it is your first VA loan use, and your service category. The funding fee can be financed into the loan so you do not need to pay it upfront. The fee is waived entirely for veterans with a VA-rated service-connected disability, Purple Heart recipients serving on active duty, and surviving spouses receiving Dependency and Indemnity Compensation (DIC). If you receive a disability rating after closing, you may be eligible for a retroactive refund of the funding fee.
Can I use a VA loan more than once?
Yes, VA loan benefits can be used multiple times throughout your lifetime. There is no limit on how many times you can use a VA loan as long as you have remaining entitlement. If you have paid off a previous VA loan and sold the property, you can restore your full entitlement. You can even have two VA loans at the same time if you have remaining entitlement (known as second-tier entitlement). However, subsequent uses of the VA loan with zero down payment come with a higher funding fee of 3.3% compared to 2.15% for first-time use, making a down payment more advantageous on subsequent uses.
How does a VA loan compare to an FHA loan?
VA loans offer several advantages over FHA loans. VA loans require no down payment (FHA requires 3.5%), no monthly mortgage insurance premium (FHA charges MIP for the life of the loan with less than 10% down), and generally offer lower interest rates. VA loans also have no maximum loan amount for borrowers with full entitlement, while FHA loans have county-specific limits. However, VA loans require a funding fee (though it can be waived for disabled veterans), while FHA requires an upfront MIP of 1.75% of the loan amount. VA loans also have stricter property requirements and require a VA appraisal. For eligible veterans, VA loans are almost always the better choice due to zero down payment and no ongoing mortgage insurance.
What are VA loan limits in 2024?
For veterans with full entitlement (first-time users or those who have restored entitlement), there are no VA loan limits — you can borrow as much as a lender will approve with no down payment required. For veterans with reduced entitlement (those who still have an active VA loan or have not restored entitlement from a defaulted loan), the county-specific conforming loan limits apply. In 2024, the baseline conforming loan limit is $766,550 for most U.S. counties, with higher limits in high-cost areas (up to $1,149,825 in places like San Francisco and New York City). The VA guarantees 25% of the loan amount up to the county limit, so borrowers with reduced entitlement may need a down payment on amounts exceeding these limits.
Do VA loans require an appraisal?
Yes, all VA purchase loans require a VA appraisal conducted by a VA-assigned appraiser. The VA appraisal serves two purposes: determining the fair market value of the property and verifying that it meets the VA Minimum Property Requirements (MPRs). MPRs ensure the property is safe, structurally sound, and sanitary. Common issues that can fail a VA appraisal include peeling paint (on pre-1978 homes due to lead paint concerns), missing handrails, faulty electrical systems, roof damage, standing water, and pest damage. The appraisal typically costs $400 to $700 depending on the property location. If the appraisal comes in below the purchase price, you can negotiate with the seller, make up the difference in cash, or walk away from the deal.
Can I use a VA loan for an investment property or second home?
VA loans are intended for primary residences only. You must certify that you intend to live in the property as your primary home. However, there are some strategies that allow flexibility. You can purchase a multi-unit property (up to four units) with a VA loan as long as you live in one of the units, effectively allowing you to use the VA loan for a property that generates rental income. You can also move out of a VA-financed home after living in it and rent it out, then use remaining entitlement for a new primary residence. Some veterans use this strategy over time to build a portfolio of properties originally purchased with VA loans. The VA generally expects you to occupy the home within 60 days of closing.
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