VA Mortgage Calculator
Calculate a VA loan payment including the funding fee, tax, insurance and HOA — VA loans need no down payment and no monthly mortgage insurance.
How to use this calculator
- 1Enter the home price and down payment — 0% is fully allowed for eligible VA borrowers.
- 2Indicate whether this is your first use of VA loan eligibility and whether you qualify for the disability exemption.
- 3Add property tax, insurance and any HOA or other costs for the full monthly payment.
How the calculation works
Funding fee = Loan amount × fee rate (by down payment tier and first/subsequent use). No recurring mortgage insurance applies.- Fee rate
- Ranges from 1.25% to 3.3%, lower for a larger down payment and for first-time use
- Financed loan
- The base loan amount plus the funding fee, if financed rather than paid in cash
The funding fee exists to offset the cost of the VA loan guarantee to taxpayers, since there is no monthly mortgage insurance to do so the way FHA's MIP or conventional PMI does — it is a one-time cost in exchange for no recurring one.
Veterans receiving VA disability compensation (even at a low rating) are fully exempt from the funding fee, which is one of the most valuable and most commonly missed VA loan benefits.
Worked example
$350,000 home, 0% down, 6.5%, 30-year, first use
- 1.Loan amount: the full $350,000 (0% down).
- 2.Funding fee at 0% down, first use: 2.15% × $350,000 = $7,525.00, financed for a total loan of $357,525.00.
- 3.Principal & interest on $357,525.00 at 6.5% over 30 years: $2,259.80/month.
Result: $2,259.80 P&I, before tax and insurance — no monthly mortgage insurance
What a VA loan actually is
Like an FHA loan, a VA loan is issued by an ordinary private lender, not the government — the Department of Veterans Affairs instead guarantees a portion of the loan, promising to cover the lender’s loss if the borrower defaults. That guarantee is what allows lenders to offer eligible borrowers terms that would otherwise be far harder to get, most notably financing the full purchase price with no down payment at all.
The guarantee also removes the need for the recurring monthly mortgage insurance that both conventional and FHA loans typically require at low down payments — a structural difference, not just a smaller fee, that is one of the program’s most valuable and most distinctive features.
The funding fee that replaces monthly mortgage insurance
In place of ongoing mortgage insurance, most VA borrowers pay a one-time funding fee, calculated as a share of the loan amount and either paid in cash at closing or financed into the loan itself. The fee is priced lower for a larger down payment and for a borrower’s first use of VA eligibility, and higher for subsequent use with little or no money down — a structure meant to keep the guarantee program self-sustaining without charging every borrower the same flat amount. Veterans receiving VA disability compensation are exempt from the funding fee entirely, one of the program’s most valuable and most frequently overlooked benefits.
Who generally qualifies
VA loan eligibility is tied to military service rather than income or first-time buyer status, and is documented through a Certificate of Eligibility rather than assumed from service alone.
- Active-duty service members — generally eligible after meeting a minimum period of service, verified through the Certificate of Eligibility process.
- Veterans — eligibility depends on service dates and length, with different rules for different eras of service.
- Some National Guard and Reserve members — eligible under their own separate service-length rules, distinct from active-duty requirements.
- Certain surviving spouses — spouses of service members who died in service or from a service-connected disability may qualify in their own right.
Making the most of VA loan eligibility
VA entitlement is not a one-time benefit, and a few habits help borrowers get full value from it over time.
- 1Confirm the disability exemption before assuming the funding fee applies — it is easy to price the loan as if the fee is unavoidable and overlook an exemption that is actually available.
- 2Understand that entitlement can often be reused — VA eligibility is not necessarily a once-in-a-lifetime benefit — entitlement can be restored after a loan is paid off or, in some cases, used again while a prior VA loan is still outstanding.
- 3Compare the funding fee against FHA or conventional mortgage insurance — a one-time fee, especially when financed, is often cheaper over the life of the loan than years of recurring monthly premiums, even accounting for a higher upfront cost.
Origins in the GI Bill
The VA loan guarantee began with the Servicemen’s Readjustment Act of 1944 — better known as the GI Bill — passed to help millions of returning Second World War veterans reintegrate into civilian life without repeating the economic hardship many veterans of the First World War had faced. Home loan guarantees were one part of a broader package that also covered education and unemployment support.
The program is widely credited with helping fuel the rapid growth of suburban homeownership in the decades after the war, by making buying a home realistic for veterans who otherwise had little savings for a down payment. It has been renewed and adjusted many times since, but the core mechanism — a government guarantee standing behind an ordinary private loan — has remained the same for eight decades.
What this assumes, and where it stops
Assumptions
- The borrower is VA-loan eligible.
Limitations
- Does not verify VA loan limits or entitlement amounts, which affect how much can be borrowed with no down payment in higher-cost areas.
Common questions
Why does a VA loan need no down payment or mortgage insurance?
The VA guarantees a portion of the loan to the lender, which is what lets lenders offer no down payment and no monthly mortgage insurance without taking on excess risk — the funding fee is what pays for that guarantee, functioning as a one-time cost instead of the FHA or conventional approach of recurring monthly premiums.
Who is exempt from the funding fee?
Veterans receiving VA disability compensation are exempt, as are some surviving spouses of veterans who died in service or from a service-connected disability. This exemption is one of the most valuable and most frequently overlooked VA loan benefits — always confirm eligibility before assuming the fee applies.
Sources
- VA funding fee tables — US Department of Veterans Affairs
Formula and content last reviewed on .
Results are estimates for information only, not professional advice.
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