VA Mortgage Calculator
A VA loan needs zero down and has no monthly mortgage insurance — its only insurance-like cost is a one-time funding fee (2.15% first use, no down), usually financed into the loan. This calculator builds the full VA payment with that fee included.
Use this VA mortgage calculator to estimate the real monthly cost of a VA home loan. Enter the price, any down payment, your rate and term, and choose first or subsequent use — it works out the funding fee, the financed loan and the full payment with taxes and insurance, with no hidden PMI because VA loans do not have any.
Enter the price, down payment, rate and funding-fee status, then press Calculate to see the full VA payment.
How the VA mortgage calculator works
The VA home loan is one of the strongest benefits of military service: it allows 100% financing with no down payment and, crucially, no monthly mortgage insurance. The one cost that sets it apart from a plain mortgage is the VA funding fee — a one-time charge that most buyers finance into the loan. This calculator starts from your base loan (price minus any down payment), adds the funding fee at the correct rate for your situation, and amortizes that total at your rate and term. Property tax and insurance are added monthly to give the full payment.
Because there is no PMI, a VA payment is often lower than an equivalent FHA loan or a low-down conventional mortgage. The funding fee is the trade-off, and it varies: putting money down lowers it, and a service-connected disability removes it entirely. Use the affordability calculator to confirm the payment fits your budget.
How the VA payment is built
- Base loan — price − down payment
- Funding-fee rate — 2.15% first use, no down; 1.5% at 5% down; 1.25% at 10% down; 3.3% subsequent use under 5% down
- P&I — amortized on the base loan plus the financed funding fee
Why VA loans are often cheaper monthly
The absence of monthly mortgage insurance is the quiet superpower of the VA loan. On a low-down conventional loan you might pay $150–$300 a month in PMI, and on an FHA loan the annual MIP can last the life of the loan. A VA borrower pays neither. The funding fee is a real cost, but because it is one-time and financed, it spreads thinly across 360 payments. For a buyer who plans to stay put, the lifetime savings from skipping mortgage insurance frequently outweigh the funding fee several times over.
When putting money down makes sense
You never have to make a down payment on a VA loan, but a modest one can pay off. Reaching 5% down cuts the funding fee from 2.15% to 1.5%, and 10% down cuts it to 1.25% — real savings on the fee itself, plus a smaller balance and payment. If you are exempt from the funding fee because of a service-connected disability, that math changes: with no fee to reduce, there is less reason to put money down beyond lowering the loan. Tick the exempt box to see your payment without any fee.
Using your VA loan more than once
The VA home loan benefit is not a one-time perk. You can use it again and again over your lifetime, and your full entitlement is restored each time you pay off and sell a VA-financed home. Even without selling, many veterans can hold more than one VA loan at once through second-tier (bonus) entitlement — for example, keeping a first home they previously lived in and buying a new primary residence with a second VA loan, subject to county loan limits and remaining entitlement. There is no cap on how many times the benefit can be used. The one firm rule is occupancy: each VA loan requires you to certify that you will live in the home as your primary residence, usually within 60 days of closing.
Estimate only — not a loan offer or financial advice. Funding fee rates are the current VA schedule (effective April 7, 2023) and can change. Confirm your eligibility, exemption and exact figures with a VA-approved lender.
How to use it & key terms
Enter the price, any down payment, rate, term, and your funding-fee status, then press Calculate to see the funding fee, the financed loan and the full VA payment.
| Term | What it means |
|---|---|
| VA loan | A mortgage guaranteed by the Department of Veterans Affairs. |
| Funding fee | A one-time charge that replaces mortgage insurance, usually financed. |
| First use | Your first time using a VA loan benefit — a lower funding fee. |
| Subsequent use | A later VA loan — a higher fee if you put under 5% down. |
| Exempt | No funding fee, e.g. for a service-connected disability. |
| P&I | Principal and interest — the core loan repayment. |
Sources & methodology
The calculator computes the base loan (price minus down payment), applies the VA funding fee at the rate matching your use and down payment, and finances that fee into the balance. Principal and interest are amortized on the total loan at the entered rate and term. VA loans carry no monthly mortgage insurance, so the payment is principal, interest, property tax and homeowners insurance only. Funding-fee rates follow the VA schedule effective April 7, 2023: first use 2.15% (under 5% down), 1.5% (5% down), 1.25% (10%+ down); subsequent use 3.3% (under 5% down), 1.5% and 1.25% at 5% and 10% down. Verified against VA.gov as of August 2026.
Sources: U.S. Department of Veterans Affairs funding fee rate charts (VA.gov, effective April 7, 2023), and the standard mortgage amortization formula.
Entitlement, the COE, and who skips the funding fee
Behind every VA loan is a concept called entitlement — the amount the Department of Veterans Affairs guarantees to the lender on your behalf. That guarantee, not a cash down payment, is what lets qualified borrowers finance a home with nothing down. You prove your entitlement with a Certificate of Eligibility (COE), a document based on your service record that lenders require before closing. Eligibility flows from qualifying service: veterans, active-duty members, many National Guard and Reserve members, and certain surviving spouses can all be entitled, each under their own service thresholds.
The funding fee usually gets the attention, so it is worth knowing who does not pay it. Borrowers receiving VA disability compensation, and certain surviving spouses, are exempt from the funding fee entirely — a significant saving that turns an already low-cost loan into an especially cheap one. Everyone else pays the one-time fee, which the calculator above folds into the balance, but the exemption is easy to overlook and worth checking before you assume it applies.
VA loans also carry borrower protections that rarely make the headlines:
- No prepayment penalty, so extra payments and early payoff cost nothing beyond the principal you send.
- Assumability — a future qualified buyer may be able to take over your loan and its rate, which can be valuable if you bought when rates were low.
- A required VA appraisal that checks the home against Minimum Property Requirements, adding a layer of protection that the property is safe, sound and sanitary.
Together these features explain why the loan is often cheaper than it first looks. There is still no monthly mortgage insurance — the entitlement replaces it — so once the funding fee is handled your payment is just principal, interest, property tax and homeowners insurance. One planning note: entitlement is a finite amount you can use, restore and reuse, not a single lifetime coupon. Paying off and selling a VA-financed home generally restores your full entitlement for the next purchase, while keeping the first home may leave only partial entitlement for a second loan. Confirm your COE, check whether the funding-fee exemption applies to you, then use the calculator above to see the true monthly cost.
Frequently asked questions
What is a VA loan?
A mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members and some surviving spouses. It allows zero down payment, has no monthly mortgage insurance, and typically offers competitive rates in exchange for a one-time funding fee.
What is the VA funding fee?
A one-time charge that keeps the program running at no cost to taxpayers. For a first-use purchase with no down payment it is 2.15% of the loan; it drops to 1.5% with 5% down and 1.25% with 10% down. Subsequent-use borrowers with under 5% down pay 3.3%.
Do VA loans have monthly mortgage insurance?
No. Unlike FHA and low-down conventional loans, VA loans have no monthly mortgage insurance or PMI. The VA guarantee replaces it, so once the funding fee is covered your payment is just principal, interest, taxes and insurance.
Can I roll the VA funding fee into the loan?
Yes. Most borrowers finance the funding fee into the loan rather than pay it in cash at closing. This calculator adds it to the base loan by default, so the payment reflects the slightly larger balance and the interest on it.
Who is exempt from the VA funding fee?
Veterans receiving VA compensation for a service-connected disability, those eligible to receive it, and many surviving spouses are exempt. Purple Heart recipients on active duty may also qualify. Tick the exempt box to remove the fee.
How much down payment do I need for a VA loan?
None. A core benefit is 100% financing with no down payment. Putting money down is optional, but it lowers the funding fee — 5% down cuts it to 1.5% and 10% down to 1.25% — and reduces the loan balance and payment.
Is the VA funding fee different the second time?
Yes. For subsequent use with under 5% down the fee rises to 3.3% of the loan, versus 2.15% for first use. With 5% or 10% down the rate is the same whether it is your first or a later loan — 1.5% and 1.25%.
Can you use a VA loan more than once?
Yes. The benefit is reusable for life, with no limit on how many times you use it. Your full entitlement is restored once you pay off and sell a VA-financed home. Through second-tier entitlement, many veterans can even hold two VA loans at once — such as keeping a former residence and buying a new primary home — subject to loan limits and remaining entitlement.
Can you use a VA loan for an investment property?
Not for a pure rental — a VA loan requires you to certify you will occupy the home as your primary residence, generally within 60 days. You can buy a two-to-four-unit property, live in one unit and rent the others, and you may later rent out a VA-financed home if you move, for example on a military relocation.
VA loan or FHA — which is better?
If you qualify for a VA loan it is usually the stronger choice: no down payment, no monthly mortgage insurance, and the funding fee is waived for veterans with a service-connected disability. An FHA loan is open to any buyer with 3.5% down but carries ongoing MIP. Compare both if you are eligible for each.
Are VA loans assumable?
Yes — and unusually, even a non-veteran can assume a VA loan with lender and VA approval. The buyer takes over your rate and balance, which is valuable when rates have risen. The catch: if a non-veteran assumes it, your VA entitlement stays tied up until the loan is paid off, so you may be unable to get another VA loan until then. A fellow veteran can substitute their entitlement to free yours.