VA Loan Calculator
VA loans offer zero down payment and no mortgage insurance for eligible veterans and service members. This calculator shows your payment including the one-time funding fee.
Why VA Loans Beat Almost Everything Else
VA loans are the single best mortgage deal in America for those who qualify. Zero down payment means you can buy a home with closing costs as your only upfront expense—often $5,000 to $10,000 instead of the $60,000 you'd need for 20% down on a $300,000 house.
No mortgage insurance saves borrowers thousands per year compared to FHA loans or low-down-payment conventional loans. Where an FHA borrower pays $200+ monthly for MIP that never goes away, a VA borrower pays nothing. Over 30 years, that's $72,000 in savings.
Interest rates typically run 0.25% to 0.5% below conventional loans because the VA guarantee reduces lender risk. On a $350,000 loan, a half-point rate advantage saves roughly $65 per month—another $23,400 over 30 years. Combine lower rates with no PMI and the savings compound dramatically.
Understanding the VA Funding Fee
The funding fee is the VA's way of keeping the program self-sustaining without taxpayer subsidies. First-time users with zero down pay 2.3% of the loan amount. Put down 5% or more and it drops to 1.65%. Subsequent uses increase the fee to 3.6% with zero down or 1.65% with 5% down.
On a $350,000 purchase with zero down, the fee is $8,050. That gets rolled into the loan, so you finance it rather than paying upfront, but you'll pay interest on it for the life of the loan. The good news: veterans receiving disability compensation are exempt from the funding fee entirely, saving thousands immediately.
Even with the funding fee, VA loans often cost less than alternatives. Compare a $350,000 VA loan (2.3% fee, no PMI, 5.75% rate) to an FHA loan (1.75% upfront MIP, 0.85% annual MIP, 6.0% rate). The VA loan saves roughly $150 per month despite a higher upfront fee, breaking even in the first year and saving $54,000 over 30 years.
VA Loan Myths That Need to Die
Myth one: VA loans take forever to close. False. VA loans close in 30 to 45 days on average, identical to conventional loans. Delays happen when buyers don't have their paperwork ready or lenders are inexperienced with VA loans. Use a VA-savvy lender and the process runs smoothly.
Myth two: Sellers won't accept VA offers. Partially true in hot markets where cash offers dominate, but in balanced or buyer's markets, VA loans are as competitive as any other financing. Educate your agent to address seller concerns about appraisals and repairs upfront.
Myth three: VA appraisals are too strict. The VA does require the home to meet minimum property requirements—no peeling paint, functioning systems, safe water—but these protect you as much as the lender. Most homes sail through. When issues arise, negotiate repairs with the seller or move on to a better property.
Frequently Asked Questions
Who qualifies for a VA loan?
Active duty service members, veterans with qualifying discharge status, National Guard and Reserve members with sufficient service, and certain surviving spouses are eligible.
What is the VA funding fee?
A one-time fee the VA charges to offset program costs. First-time users pay 2.3% with zero down, 1.65% with 5% down. The fee is waived for veterans receiving disability compensation.
Do VA loans require mortgage insurance?
No. VA loans never require PMI or MIP regardless of down payment amount. This is one of the program's biggest advantages over FHA and conventional loans.
Is there a VA loan limit?
Not anymore. As of 2020, eligible borrowers can finance any amount as long as they qualify based on income and debt-to-income ratio. The lender determines the maximum loan amount.
Can I use a VA loan more than once?
Yes. You can reuse your VA loan benefit multiple times. Sell the home or pay off the loan and your entitlement restores. You can even have multiple VA loans simultaneously if you have sufficient entitlement.