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.

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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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Reviewed by CalcBold Editorial · Sources: VA Loan Guaranty Service Handbook 2026 + VA Funding Fee Tables + FHFA conforming limits 2026Last verified May 15, 2026Methodology

Loan amount

VA mortgages typically cap at the FHFA conforming limit ($766,550 most counties, higher in high-cost). Above that, jumbo VA available.

Annual interest rate

VA loan rates are typically 0.25-0.5% below conventional because VA guarantees 25% of the loan. Lock your rate before quoting.

Term

30-year fixed is the VA standard; 15-year available at a lower rate but higher monthly payment.

First-use VA loan?

Used a VA loan before? Funding fee is higher on subsequent use. After paying off, entitlement restores at full level on the next purchase.

Service-connected disability waiver?

Veterans receiving VA disability compensation are exempt from the funding fee. Verify your status with the VA Certificate of Eligibility (COE).

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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.

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Frequently Asked Questions