VA Loan Calculator
What Is a VA Loan?
A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). The program is designed to help active duty service members, veterans, and eligible surviving spouses become homeowners.
VA loans offer significant advantages over conventional mortgages: no down payment required (0% down), no private mortgage insurance (PMI), competitive interest rates, and more lenient credit requirements.
The trade-off is the VA funding fee — a one-time payment that helps offset the loan program cost to taxpayers. This fee can be financed into the loan or paid upfront at closing.
2024 VA Funding Fee Rates
| Down Payment | First-Time Use | Subsequent Use |
|---|---|---|
| None (0%) | 2.15% | 3.30% |
| 5% – 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Exemptions: Veterans receiving VA compensation for service-connected disabilities and certain surviving spouses are exempt from the funding fee.
VA Loan Benefits
- 0% down payment: No down payment required for loan amounts up to the conforming limit.
- No PMI: Unlike conventional loans with less than 20% down, VA loans don't require private mortgage insurance.
- Competitive rates: VA loans typically have lower interest rates than conventional loans.
- Limited closing costs: The VA limits what fees veterans can be charged.
- No prepayment penalty: Pay off your loan early without fees.
- Assumable: VA loans can be transferred to another qualified buyer.
VA Loan Eligibility
To qualify for a VA loan, you typically need one of the following:
- 90 consecutive days of active service during wartime
- 181 days of active service during peacetime
- 6+ years in the National Guard or Reserves
- Spouse of a service member who died in the line of duty or from a service-connected disability
A Certificate of Eligibility (COE) from the VA is required to prove eligibility to lenders.
Frequently Asked Questions
What is a VA loan?
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members, and surviving spouses. Benefits include 0% down payment and no PMI.
What is the VA funding fee?
A one-time fee (2.15% for first-time use with 0% down) that helps fund the VA loan program. It can be financed into the loan. Veterans with service-connected disabilities are exempt.
Who qualifies for a VA loan?
Active duty military (90+ days), veterans with honorable discharge, National Guard/Reserves (6+ years), and certain surviving spouses. A Certificate of Eligibility (COE) is required.