VA Mortgage Calculator

For a first-time VA purchase loan with no down payment, the funding fee is 2.15% for regular military and National Guard / Reserves (P.L. 116-23 equalised the two groups from January 2020). With 5% to under 10% down it drops to 1.50%; with 10% or more, to 1.25%. Subsequent-use borrowers pay 3.30% with less than 5% down and the same 1.50% / 1.25% at higher down payments. These rates are set by 38 U.S.C. §3729 and remain in effect through 2031.

Yes. Most VA borrowers roll the funding fee into the loan balance rather than paying it at closing, so the loan is slightly above the price minus the down payment. On a $350,000 purchase with 0% down, the financed fee of $7,525 makes the loan $357,525. You pay interest on the fee over the life of the loan, so the long-run cost is higher than paying it upfront, but many borrowers prefer to keep the cash at closing.

Four groups are exempt: (1) veterans receiving VA disability compensation for a service-connected disability; (2) veterans entitled to compensation but receiving retirement or active-duty pay instead; (3) surviving spouses receiving Dependency and Indemnity Compensation (DIC) for a veteran who died in service or from a service-connected disability; and (4) active-duty service members who have received the Purple Heart. Confirm your exemption status on your Certificate of Eligibility before closing.

No. VA loans carry no monthly mortgage insurance of any kind. The VA guaranty gives lenders the protection PMI provides on a conventional loan — without a monthly premium. That is the largest monthly-cost advantage over FHA, which charges an annual MIP of 0.15% to 0.75% under HUD Mortgagee Letter 2023-05 (0.55% on a typical 30-year loan with less than 5% down), and over conventional, which charges PMI until the loan-to-value ratio reaches 80%.

For veterans with full entitlement there is no county loan limit — P.L. 116-23 removed it from 1 January 2020. You can borrow any amount with no down payment; the VA guarantees 25% of the loan, and 25% of the 2026 FHFA conforming limit of $832,750 is $208,187.50. Veterans with reduced entitlement — those carrying an existing VA loan — are held to their county's conforming limit and may need a down payment of 25% of any amount above it.

For an eligible veteran, VA usually costs less every month. FHA adds an annual MIP — 0.55% of the base loan on a 30-year loan with less than 5% down, for the whole term when the LTV is above 90% — on top of P&I. VA charges a one-time funding fee (2.15% at first use with 0% down) and no ongoing premium. At $350,000, 6.25% for 30 years, FHA's MIP is $154.80 a month and the VA payment comes out $69.44 a month lower even with the fee financed.

Subsequent use applies when you have used your VA home-loan entitlement before. The most common case is buying another VA-backed home after a previous VA loan. The funding fee for subsequent use with less than 5% down is 3.30% — 1.15 percentage points higher than first use. You can reduce it to 1.50% by putting at least 5% down or to 1.25% with 10% or more. Full entitlement is restored when you sell the prior home and pay off its VA loan, or by a one-time restoration if you paid it off without selling.

No. VA loans are limited to primary residences. You must intend to occupy the home as your principal residence — the VA requires a certification to that effect. A property you plan to rent out from day one does not qualify. You may rent the home later if your circumstances change (for example, a permanent change of station), but the original occupancy requirement must be met.

Add the funding fee to the base loan if you finance it, then apply the standard amortization formula: loan × r(1+r)^n / ((1+r)^n − 1), with r the monthly rate and n the number of payments. Add one-twelfth of the annual property tax and insurance and any HOA dues. There is no mortgage-insurance line. At $350,000 with 0% down at 6.25% for 30 years the loan is $357,525, P&I is $2,201.34 and PITI with $3,300 tax and $1,200 insurance is $2,576.34.