VA Loan Calculator — Monthly P&I + Funding Fee + Conventional Compare
Drop loan amount, rate, and term — toggle first-use vs subsequent and disability waiver — get the VA monthly P&I, financed funding fee, and side-by-side savings vs a conventional 5%-down mortgage with PMI. Honest math on the VA program's two real wins: $0 down and no PMI.
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VA Loan Calculator
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What is a VA Loan?
A VA loan is a residential mortgage guaranteed by the U.S. Department of Veterans Affairs and originated by a private lender. Created by the Servicemen’s Readjustment Act of 1944 (the “GI Bill”) and expanded in every decade since, the program lets eligible veterans, active-duty servicemembers, certain National Guard and Reserve members, and qualifying surviving spouses buy a primary residence with terms no other mortgage can match: 0% down payment, no private mortgage insurance (PMI), and rates typically 0.25-0.50% below comparable conventional.
The cost of those benefits is a one-time VA funding fee(typically 1.25-3.30% of the loan amount, depending on down payment and prior VA usage), which can be financed into the loan rather than paid in cash. For veterans with service-connected disability, the funding fee is waived entirely. That combination — no down payment, no PMI, fee waived for disabled veterans — makes the VA loan the lowest total-cost mortgage option for most eligible buyers.
The VA itself does not issue the loan or set the rate. Private lenders (banks, credit unions, mortgage brokers) underwrite to VA guidelines, then receive a federal guarantee on roughly 25% of the loan amount in exchange for offering the borrower the VA benefit terms. That guarantee is why VA borrowers skip PMI — the VA itself is acting as the insurer.
The VA Funding Fee Schedule
Funding fees are set by federal statute and re-evaluated periodically. The current schedule, in effect for VA purchase loans funded in 2026:
| Down payment | First-use | Subsequent use |
|---|---|---|
| 0% (no down payment) | 2.15% | 3.30% |
| 5% to under 10% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
| Service-connected disability | Waived | Waived |
| Surviving spouse (eligible) | Waived | Waived |
A few practical notes:
- The first-use vs subsequent-use distinction is about VA history, not home history.If you used a VA loan before, paid it off, and sold the home — your entitlement is restored, and the next purchase is treated as first-use for funding-fee purposes. Don’t accept a subsequent-use quote without checking your Certificate of Eligibility (COE).
- The disability waiver is automatic once VA confirms.Any veteran receiving VA disability compensation (at any rating) qualifies. If you applied for disability and have a pending claim, ask your lender to escrow the funding fee — the VA will refund it after the claim is approved.
- VA IRRRL (streamline refinance) has its own schedule: a flat 0.50% funding fee. VA cash-out refinance uses the regular subsequent-use schedule (2.15% first-use / 3.30% subsequent).
How the Funding Fee Works in Practice
Almost every VA borrower finances the funding fee into the loan rather than paying it in cash at closing. The mechanic:
- You agree to a $400,000 purchase price with 0% down. Base loan = $400,000.
- First-use funding fee at 2.15% = $8,600.
- Total financed amount = $400,000 + $8,600 = $408,600.
- Your monthly payment is calculated on $408,600 over the loan term. The funding fee is amortized into the monthly payment over 30 years.
On the math above at 6.5% APR for 30 years, the monthly P&I on $408,600 is $2,582 versus $2,528 on the $400,000 base. The funding fee adds about $54/month for the life of the loan — or about $19,400 in total interest over 30 years on top of the $8,600 fee itself. If you have the cash, paying the fee at closing instead saves that $19,400 (real win for veterans planning to keep the loan long-term).
Worked Example: $400K Purchase, $0 Down, First-Use
A 100%-eligible veteran in San Antonio buying a $400,000 home, 30-year fixed at 6.5%, no down payment, first VA use, no disability waiver:
| Line | VA loan | Conv 5%-down | Conv 20%-down |
|---|---|---|---|
| Down payment | $0 | $20,000 | $80,000 |
| Base loan amount | $400,000 | $380,000 | $320,000 |
| Upfront fee | $8,600 funding | $0 | $0 |
| Financed amount | $408,600 | $380,000 | $320,000 |
| Rate (typical) | 6.50% | 7.00% | 7.00% |
| P&I monthly | $2,582 | $2,528 | $2,129 |
| Monthly PMI | $0 | +$190 | $0 |
| Total monthly P&I+PMI | $2,582 | $2,718 | $2,129 |
| Cash needed at signing | ~$5,000 | ~$31,000 | ~$91,000 |
The VA path requires only the closing-cost cash (typically $5K-$10K, often seller-paid up to 4% of the loan amount on VA purchases). The conventional 5%-down path requires $31K of cash. The conventional 20%-down path requires $91K. For a veteran without a huge down-payment war chest, the VA loan eliminates the largest financial barrier to homeownership.
On the monthly side, the VA payment is $136 lowerthan the equivalent conventional 5%-down (PMI saved) and only $453 higher than the 20%-down path. Over 30 years, the VA loan’s lifetime cost is comparable to the 20%-down conventional and dramatically better than the 5%-down conventional with PMI.
VA Entitlement — The Plumbing
Your VA entitlement is the dollar amount the VA will guarantee on a mortgage. Two pieces:
- Basic entitlement: $36,000. Same for every eligible veteran. This is the legacy floor from older VA versions.
- Bonus entitlement: tied to the county loan limit. Set as 25% of the FHFA conforming loan limit (typically $766,550 most counties in 2026, higher in high-cost-areas). On most counties, bonus entitlement adds about $155,640 of guarantee on top of basic.
Combined, the typical fully-eligible veteran has approximately $191,640 of entitlement. Because the VA guarantees 25% of the loan amount, $191,640 of entitlement supports a loan up to 4× that = roughly $766,550 with no down payment — exactly matching the FHFA conforming limit. Above that limit, you can still get a VA loan, but you must put down 25% of the amount that exceeds the conforming limit. The 2020 Blue Water Navy Vietnam Veterans Act removed the absolute VA loan cap; only the no-down-payment ceiling remains.
After payoff and sale of the home, your entitlement is fully restored — you can use the VA loan benefit again at full first-use treatment. Some veterans hold two VA loans simultaneously using “second-tier entitlement” (typically up to ~$144K of remaining guarantee), most often when moving for military duty without selling the previous home.
Eligibility & the Certificate of Eligibility (COE)
Five categories of borrowers qualify:
- Active-duty servicemembers with 90+ continuous days of active service.
- Veterans with qualifying service (typically 90+ days wartime active or 181+ days peacetime active).
- National Guard and Reserve members with 6+ years of satisfactory service.
- Surviving spouses of servicemembers who died in service or from a service-connected disability, unremarried (with some exceptions).
- Certain Public Health Service officers, NOAA officers, and cadets at the U.S. military and merchant marine academies.
Before applying with any lender, obtain a Certificate of Eligibility (COE)at va.gov — most lenders cannot process a VA application without one. The COE shows your eligibility category, entitlement amount, first-use vs subsequent status, and any disability waiver. It’s typically issued within a few business days online.
Properties & the VA Appraisal
VA loans are intended for owner-occupied primary residences. Eligible: single-family homes, 2-4 unit multifamily (you occupy one unit), VA-approved condos, new construction (VA-approved builder), and manufactured homes on owned land. Ineligible: investment properties, vacation homes, unapproved condos, and mobile homes on leased land. Every VA purchase requires a VA appraisal including a Minimum Property Requirements check — basic habitability and safety only. Get a separate third-party home inspection on top; MPR-flagged repairs must be completed before closing.
VA vs FHA vs Conventional — Quick Comparison
| Feature | VA | FHA | Conventional 5%-down |
|---|---|---|---|
| Min down payment | $0 | 3.5% | 5% |
| Min credit score (lender) | 580-620 typ. | 580 | 620+ |
| Mortgage insurance | None | UFMIP 1.75% + 0.55% annual | PMI 0.5-1.5% annual until 80% LTV |
| Upfront fee | 0-3.30% funding (financeable) | 1.75% UFMIP (financeable) | None |
| Seller concessions cap | 4% of loan | 6% of price | 3% of price (5%+ down) |
| Prepayment penalty | Prohibited | Prohibited | Mostly prohibited (QM rule) |
| Streamline refinance | IRRRL (no appraisal) | FHA Streamline | Full refi only |
For most eligible veterans, VA is the lowest-cost path. FHA only wins when the veteran has very low credit (FHA accepts down to 500 with 10% down) or is buying a property the VA appraisal won’t pass. Conventional 20%-down wins only when the veteran has a very large down payment already and wants to avoid the funding fee. Run the mortgage calculator on both scenarios before deciding.
Common Mistakes & Edge Cases
- Confusing “no down payment” with “no cash needed.” VA loans waive the down payment but not closing costs. Plan for $5K-$10K in cash unless you negotiate seller concessions to cover them. The closing cost calculatorshows the cash-to-close detail.
- Forgetting to request seller-paid closing costs in the offer.VA explicitly allows up to 4% of the loan amount in seller concessions — more generous than conventional. On a $400K loan, that’s up to $16,000 of closing costs the seller can cover, often enough to bring the veteran to closing with essentially $0 out of pocket.
- Believing you need a perfect credit score. The VA itself sets no minimum credit score; lenders impose their own floors. Most VA lenders accept FICO 580-620. A few lenders (Veterans United, USAA, Navy Federal) accept lower. Shop lenders if your score is borderline.
- Skipping the second-tier entitlement check when moving.If you have an existing VA loan and want to keep it as a rental while buying your next primary residence with VA, second-tier entitlement may cover the new purchase. Request a COE recalculation from the VA before assuming you’re locked into selling.
- Treating the funding fee as “free” because it’s financed.Financing the $8,600 fee on a 30-year loan at 6.5% adds ~$19,400 of interest over the loan’s life. If you have the cash, paying the fee at closing is meaningfully cheaper long-term.
- Not getting a real home inspection.The VA Minimum Property Requirements check is a low bar — it isn’t a comprehensive inspection. Veterans buying older or distressed properties have ended up with $10K-$50K of post-closing repairs they could have negotiated away with a proper inspection report in hand. Always pay $400-$600 for a third-party general inspection on top of the VA appraisal.
VA IRRRL — The Streamline Refi
The VA Interest Rate Reduction Refinance Loan (IRRRL) is the program’s streamlined refinance: no new appraisal, minimal income/credit re-verification, and a flat 0.50% funding fee (vs 2.15-3.30% on a regular VA refi). Trigger threshold: new rate at least 0.5 percentage points below current and plan to stay 2+ more years. Cross-check breakeven with the mortgage refinance calculator.
Related Calculators
- Mortgage calculator— full PITI on a VA or conventional loan to compare monthly cash flow.
- Closing cost calculator— cash-to-close breakdown including funding fee impact.
- House affordability (true)— full DTI stress test before locking in a VA purchase.
- Property tax calculator— the prepaid escrow line and monthly PITI impact.
- PMI removal calculator— not directly relevant to VA (no PMI), but a useful comparison when weighing VA vs conventional with PMI.
- Amortization schedule— month-by-month principal/interest split on the VA loan including the financed funding fee.
Frequently Asked Questions
The most common questions we get about this calculator — each answer is kept under 60 words so you can scan.
What is the VA loan program?
The VA Home Loan Guaranty program (created by Servicemen's Readjustment Act of 1944, expanded since) is a Department of Veterans Affairs program that guarantees a portion of mortgages made by private lenders to eligible veterans, active-duty servicemembers, and qualified spouses. The guarantee lets lenders offer 0% down, no PMI, and competitive rates — at the cost of an upfront VA funding fee.What is the VA funding fee and how is it calculated?
The funding fee is a one-time charge to the borrower (typically financed into the loan, not paid at closing) that funds the VA loan-guaranty program. For first-time use at 0% down: 2.15% of the loan amount. Subsequent use at 0% down: 3.30%. Down payment of 5-10% reduces fees to 1.50% (both first-use and subsequent). 10%+ down brings them to 1.25%. Veterans with service-connected disability are exempt.What does 'no down payment' actually mean in practice?
It means the VA lender will write the mortgage for 100% of the home's appraised value, with no down-payment requirement and no PMI. You DO still need closing costs (typically $5K-$15K, often seller-paid up to 4% of loan), plus any earnest money + inspection. Don't confuse 'no down payment' with 'no cash needed' — there's still some at closing.Is VA always better than conventional?
For most eligible borrowers, yes — the $0 down + no PMI advantages typically save $50K+ in upfront cash + $100/month for the loan's life. BUT — if you have 20%+ down and excellent credit, conventional with no PMI can save the 2.15% funding fee ($7,525 on a $350K loan) and may offer lower rates in some markets. Run both quotes side-by-side; don't assume.Can I roll the VA funding fee into the loan?
Yes — and that's typical. The funding fee is automatically financed into the loan amount (unless you specifically request to pay it at closing). On a $350K purchase, the 2.15% first-use fee is $7,525 added to the loan principal; your monthly payment includes the amortization of that fee over the loan term.Do I lose the VA loan benefit after using it once?
No — VA entitlement is renewable. After you pay off the loan and sell the home, you can restore your full entitlement and use VA again on a new purchase. You can also use 'second-tier entitlement' (typically up to ~$144,000 of remaining guaranty) to hold two VA loans simultaneously in some cases. Verify your specific entitlement balance with the VA via Certificate of Eligibility (COE).Are VA loan rates better than conventional?
Typically yes by 0.25-0.5%. The VA guarantees 25% of the loan, so lenders take less risk. On a $350K loan over 30 years, a 0.5% rate advantage saves ~$110/month and ~$40K over the loan's life. Plus no PMI (which conventional 5%-down typically requires). The net advantage compounds.Who is eligible for a VA loan?
Eligible borrowers: active-duty servicemembers, veterans with qualifying service (typically 90+ active-duty days or 6 years of National Guard/Reserve), surviving spouses of servicemembers who died in service or from a service-connected disability, and certain other categories. Obtain a VA Certificate of Eligibility (COE) at va.gov before applying — most lenders won't process an application without it.Can I buy any home with a VA loan?
Almost any owner-occupied primary residence. Investment properties + vacation homes are NOT eligible (must occupy within 60 days). Manufactured homes have additional requirements. Condos must be on the VA-approved condo list. The home must pass the VA Minimum Property Requirements (MPR) appraisal — basic habitability + safety. Most US single-family homes qualify; condos and mobile homes have more friction.What's the VA loan limit in 2026?
There is no statutory loan limit for VA — the 2020 Blue Water Navy Vietnam Veterans Act removed the cap. BUT — the FHFA conforming limit ($766,550 most counties in 2026) determines the maximum loan WITHOUT a down payment when you have full entitlement. Above that, you need to put down 25% of the excess. Above $1.5M typically goes to jumbo VA with stricter underwriting.What is the seller-paid closing-cost concession on VA?
Sellers can pay up to 4% of the loan amount toward closing costs on VA loans, including the entire funding fee. This is meaningfully more generous than conventional (typically 3% cap). On a $350K loan, that's $14,000 of closing costs the seller can cover — often enough to bring veterans to closing with $0 cash needed beyond earnest money.Does the VA loan have an early-payoff penalty?
No. VA loans cannot have a prepayment penalty (federally prohibited). You can pay off the loan or refinance at any time without penalty. VA IRRRL (Interest Rate Reduction Refinance Loan) is the program's streamlined refinance option, often with reduced closing costs and no new appraisal required.