VA Loan Calculator

How It Works

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, National Guard and Reserve members, and some surviving spouses. The guarantee is what makes the terms possible: no down payment required, no monthly mortgage insurance, and no VA-set minimum credit score (lenders apply their own standards). Instead of monthly insurance, most borrowers pay a one-time VA funding fee — a percentage of the loan amount that keeps the program self-funding.

The funding fee depends on two things: your down payment and whether this is your first or a subsequent use of the benefit. For purchase loans, the rates effective April 7, 2023 and still current for 2026 are: with less than 5% down, 2.15% for first use and 3.30% for subsequent use; with 5% to 9.99% down, 1.50% for both; and with 10% or more down, 1.25% for both. The fee is a percentage of the loan amount, not the purchase price, and it can be financed into the loan or paid at closing. Veterans receiving VA compensation for a service-connected disability — and qualifying surviving spouses — are exempt from the fee entirely.

Worked Example

Take a first-time VA buyer purchasing a $400,000 home with no down payment, at 7.11% over 30 years, with property tax of $4,800 a year and insurance of $1,800 a year. The funding fee is 2.15% of the $400,000 loan, which is $8,600.00. Financing it into the loan gives a total loan of $408,600.00. Principal and interest on that loan are $2,748.68 a month, and with tax ($400) and insurance ($150) the full monthly payment is $3,298.68. There is no monthly mortgage insurance to add — that is the VA advantage in one line.

The VA's own example shows how the fee scales: on a $200,000 home with a $10,000 down payment (5%), the fee is 1.5% of the $190,000 loan, or $2,850. And the exemption matters enormously: the same $400,000 purchase with no funding fee at all would have principal and interest of $2,690.83 a month and a total payment of $3,240.83 — the fee adds about $58 a month to the payment when financed, plus the $8,600.00 itself. If you receive VA disability compensation, make sure your Certificate of Eligibility shows the exemption before closing.

Assumptions

• Funding fee rates are the VA purchase-loan schedule effective April 7, 2023, still current for 2026. Refinance loans use different rates (0.50% for an IRRRL streamline refinance; 2.15% first use and 3.30% subsequent use for cash-out refinancing).
• The fee is calculated on the loan amount (price minus down payment), not the purchase price, and is financed into the loan unless you choose to pay it in cash.
• The interest rate stays fixed for the full term. Property tax and insurance stay constant.
• No down payment is required for borrowers with full entitlement, as long as the price does not exceed the appraised value. Partial entitlement has county loan limits.
• Closing costs other than the funding fee are not included — on a purchase loan, only the funding fee can be financed into the loan; other costs are paid at closing.

What this calculator leaves out: the VA's residual-income test and debt-to-income review, the appraisal and the VA's minimum property requirements, seller concessions (capped at 4% of the home's reasonable value), and any lender fees (the lender's flat charge is capped at 1% of the loan). Eligibility itself — service requirements and entitlement — is not checked here.

The down payment changes the fee rate as well as the loan size, which makes the 5% line worth attention. The table below shows the same $400,000 home at 7.11% over 30 years:

Two things stand out. First, subsequent use with no down payment costs $4,600.00 more in fees than first use — the gap only exists below 5% down, because at 5% and above the rates are identical for both. Second, putting 5% down saves $154.05 a month against the first-use zero-down payment, and it erases the subsequent-use penalty entirely.

How to Use This Calculator

Enter the home price and your down payment — $0 is the classic VA purchase, and the dollar and percentage fields stay in sync. Select whether this is your first or a subsequent use of the VA benefit, and whether you are exempt from the funding fee. Choose whether to finance the fee into the loan (the usual choice, since it keeps cash at closing low) or pay it in cash, then set the rate, term, tax and insurance. The results show the fee rate and amount, the total loan, the monthly payment, and the cash you need at closing.

If you are unsure whether you are a first-time or subsequent user, your Certificate of Eligibility (COE) shows your entitlement and prior use. If a previous VA loan was paid off and the home sold, your full entitlement is usually restored — but the funding fee classification depends on whether you have used the benefit before, not on whether entitlement was restored.

Tips and Practical Advice

Check the exemption first, before anything else. If you receive VA disability compensation, the funding fee is $0 — on a $400,000 loan that saves $8,600.00 at closing and about $58 a month on the payment. If your disability claim is still pending at closing, you may be able to get the fee refunded later if the award is made effective before your closing date, so keep the paperwork.

Consider 5% down even though $0 down is allowed. It drops the fee rate from 2.15% to 1.50% for first use — and from 3.30% to 1.50% for subsequent use — which on a $400,000 home saves thousands in fees and lowers the monthly payment. It also gives you equity from day one, which matters if you need to sell or refinance in the first few years.

Finally, shop the rate. VA loans often carry lower rates than conventional loans, but the rate still varies by lender, and the funding fee means the first years of payments are mostly interest. Getting three quotes from VA-approved lenders is the simplest way to save real money, and your VA entitlement can be used more than once — it is a lifetime benefit, not a one-time offer.

Sources: U.S. Department of Veterans Affairs, VA.gov funding fee and closing costs — purchase-loan rates effective April 7, 2023, still current for 2026 (page updated Oct 5, 2026); 38 U.S.C. §3729; VA Pamphlet 26-7 (Lender's Handbook). Freddie Mac PMMS, week ending Nov 12, 2026 (30-year fixed 7.11%). Last reviewed: 13 November 2026.

Frequently Asked Questions