VA Mortgage Calculator
Estimate VA mortgage payments with our VA Mortgage Calculator. Use it to model a military home purchase, compare principal and interest with property taxes, homeowners insurance, HOA dues, and the effect of the VA funding fee, and pressure-test the total monthly housing cost before you apply. It is useful for first-time military buyers, repeat-use borrowers, and anyone comparing VA against FHA or conventional financing while keeping a close eye on upfront cash, financed balance, and payment fit. The calculator shows payment breakdown, amortization, total interest, loan-to-value, and the effect of funding-fee assumptions, all instantly in your browser with no data storage.
What Is a VA Loan Calculator?
A VA loan calculator estimates your monthly mortgage payment on a VA-backed home loan, including principal and interest, the VA funding fee (typically financed into the loan), property taxes, and homeowner's insurance. VA loans are available to eligible veterans, active-duty service members, and surviving spouses. They offer three major advantages over other loan types: no down payment required, no private mortgage insurance (PMI), and competitive interest rates — often 0.25–0.5% below conventional rates for the same credit profile. This calculator shows the full payment picture including the funding fee so you can compare VA vs. FHA vs. conventional before applying.
How VA Loan Costs Are Calculated
The VA funding fee is a one-time fee paid to the Department of Veterans Affairs, typically rolled into the loan. For a first-time VA purchase with 0% down, the fee is 2.15% of the loan amount. For subsequent use at 0% down, it rises to 3.30%. Putting 5%+ down drops the fee to 1.50% and 10%+ reduces it to 1.25%. Veterans with service-connected disability ratings of 10% or more are exempt from the funding fee entirely. There is no monthly MIP or PMI — saving $100–$250/month compared to FHA or low-down conventional loans.
Worked Example: Sergeant Williams Buys a $385,000 Home
Sgt. Williams is a first-time VA buyer purchasing a $385,000 home with 0% down. At 6.75% for 30 years, the VA funding fee (2.15%) is $8,278, rolled into the loan for a total balance of $393,278.
Principal & Interest: $2,549/month
Loan: $393,278 | Rate: 6.75% | Term: 30 years
No PMI (saves ~$180/month vs. conventional 5% down)
Estimated taxes ($4,620/yr): +$385/month | Insurance ($1,440/yr): +$120/month
Total Monthly PITI: ~$3,054
VA Funding Fee Reference Table (2024)
| Down Payment | First Use | Subsequent Use | On $350,000 Loan (First Use) |
|---|---|---|---|
| 0% (zero down) | 2.15% | 3.30% | $7,525 |
| 5% – 9.99% | 1.50% | 1.50% | $5,250 |
| 10%+ | 1.25% | 1.25% | $4,375 |
| Disabled veteran (10%+ rating) | Exempt | Exempt | $0 |
VA vs. FHA vs. Conventional — Key Differences
| Feature | VA Loan | FHA Loan | Conventional (5% down) |
|---|---|---|---|
| Down payment | 0% required | 3.5% | 5% |
| Mortgage insurance | None (no PMI or MIP) | MIP for life of loan | PMI until 20% equity |
| Upfront fee | Funding fee (0–3.3%) | UFMIP 1.75% | None |
| Min. credit score | No VA minimum (lenders ~620) | 580 for 3.5% down | 620+ |
| Eligibility | Veterans, active duty, spouses | All borrowers | All borrowers |
| Competitive rate vs. conventional | 0.25–0.5% lower typical | Similar | Baseline |
Key VA Loan Concepts: Entitlement, COE, and Residual Income
Entitlement is the VA's guarantee to the lender. Full entitlement (for those who have never used a VA loan, or have paid off a previous VA loan) allows borrowing with no loan limit and 0% down. Certificate of Eligibility (COE) confirms your VA eligibility — you can apply through VA.gov or your lender. Residual income is the VA's unique requirement: after all monthly obligations, you must have a minimum amount of remaining income based on family size and geography. This requirement is why VA loans have historically had lower foreclosure rates than other loan types.
Tips for Using Your VA Loan Benefit
If you have a service-connected disability rating, verify your exemption from the funding fee before closing — it saves thousands and lenders don't always check automatically. Compare VA rates from at least 3 lenders; VA doesn't set rates and variation between lenders can be 0.25–0.5%. You can use your VA benefit multiple times — once you pay off a VA loan, full entitlement is restored. For a second simultaneous VA loan (buying a new home before selling), you may have remaining entitlement depending on your county's conforming limit.
Frequently Asked Questions About VA Loans
Who is eligible for a VA loan?
Active-duty service members (after 90 days), veterans (various service length requirements), National Guard and Reserve members (6 years or activated), and surviving spouses of veterans who died in service or from service-connected disability. Check VA.gov for full eligibility criteria.
Do VA loans require a down payment?
No. VA loans are one of the only loan programs that require zero down payment on any purchase price. There is no loan limit for borrowers with full entitlement, meaning you can buy a $1 million home with $0 down if you qualify income-wise.
What is the VA funding fee and can I avoid it?
The VA funding fee is a one-time fee (2.15% for first use, 0% down) that funds the VA loan program. You can reduce it by putting 5% or 10% down. Veterans with 10%+ service-connected disability ratings are fully exempt. The fee is usually rolled into the loan.
Are VA loan rates lower than conventional?
Yes, typically 0.25–0.50% below conventional for similar credit profiles. This is because VA-backed loans carry lower default risk (due to residual income requirements) and the lender is partially guaranteed by the government. Over 30 years, even 0.25% lower saves $15,000–$30,000 on a $350,000 loan.
Can I use a VA loan to buy a second home?
VA loans are intended for primary residences. However, if you have remaining entitlement after a first VA loan, you may be able to get a second VA loan on a new primary residence (e.g., after a PCS move) while keeping the first property. Consult a VA-approved lender for your specific situation.
Is a VA loan better than FHA?
For eligible borrowers, VA is almost always better than FHA: no down payment required, no PMI, no monthly MIP, and typically lower rates. The only downside is the funding fee (vs. FHA's UFMIP), which is comparable. The no-PMI benefit alone saves $100–$250/month.