VA Loan Calculator — Payment & Funding Fee Estimate

What the VA funding fee actually is

VA loans let eligible veterans and service members buy with $0 down and skip PMI entirely, two genuinely rare features for any mortgage. In exchange, most borrowers pay a one-time VA funding fee, which goes directly to the Department of Veterans Affairs rather than your lender.

Think of it as the trade-off that makes the whole program work. The fee helps offset the cost of loans that eventually default, which is what allows the VA to guarantee loans with no down payment and no monthly mortgage insurance in the first place — costs that would otherwise be passed on to every borrower as PMI.

These are the standard 2026 purchase-loan rates. A streamlined refinance, known as an IRRRL, carries a much lower 0.50% fee, and cash-out refinances follow the same 2.15%/3.30% split as purchase loans based on first-time or repeat use.

Who's exempt from the funding fee

Veterans receiving VA disability compensation are generally exempt from the funding fee entirely — this is one of the most valuable, and most commonly missed, VA loan benefits. Eligible Purple Heart recipients on active duty and certain surviving spouses receiving Dependency and Indemnity Compensation are typically exempt as well.

Exemption status gets confirmed through your Certificate of Eligibility, so it's worth checking with a VA-approved lender before assuming either way — some borrowers who could qualify for an exemption don't realize it until a lender flags it during underwriting. The VA's official loan types page is the most current source for exemption rules if anything changes.

VA purchase loans vs IRRRL vs cash-out

The funding fee table above covers standard purchase loans, but the VA offers other loan types with different fee structures worth knowing about. An Interest Rate Reduction Refinance Loan, usually called an IRRRL, is a streamlined refinance available to existing VA borrowers wanting a lower rate, and it carries a much smaller 0.50% funding fee since there's less underwriting risk involved.

A VA cash-out refinance, which lets you tap home equity or refinance a non-VA loan into a VA loan, follows the same 2.15%/3.30% fee structure as a purchase loan based on first-time or subsequent use. Loan assumptions, where a buyer takes over an existing VA loan's terms, carry a smaller 0.50% fee as well.

Why "no PMI, ever" matters more than it sounds

On a conventional loan, putting down anything less than 20% typically means paying PMI every month until you build up enough equity to cancel it — often 0.5% to 1.5% of the loan balance per year, tacked directly onto your payment.

A VA loan skips this completely, regardless of down payment size. On a $400,000 loan with nothing down, that can easily be $150 to $250 a month that a conventional borrower in the same position would be paying and a VA borrower simply isn't. Over even a handful of years, that gap alone can exceed the entire one-time funding fee.

Financing the funding fee versus paying cash

Most VA borrowers roll the funding fee into their total loan amount rather than paying it upfront, which is exactly what the "finance the funding fee" toggle in the calculator above models. This keeps closing costs lower but means paying interest on the fee itself over the life of the loan.

Paying the fee in cash at closing avoids that extra interest entirely, but obviously requires more money on hand at the table. Neither choice is universally better — it depends on how much cash you have available versus how long you'll hold the loan.

How to use this calculator

Enter the home price and any down payment you're planning, even if it's $0. Select whether this is your first VA loan or a subsequent use, since that changes the funding fee tier significantly at low down payment levels. If you have a service-connected disability rating, select the exempt option to see your payment without the fee factored in.

Basic eligibility, briefly

VA loan eligibility generally comes down to service history — typically 90 consecutive days of active service during wartime, 181 days during peacetime, or six years in the National Guard or Reserves, along with certain surviving spouses.

A Certificate of Eligibility from the VA's own eligibility page confirms your specific status, and most lenders can help pull this during the application process rather than requiring you to sort it out beforehand.

Why VA loan rates tend to run lower

VA loans often come with slightly lower average interest rates than comparable conventional loans, since the VA guarantee reduces the lender's risk if a borrower defaults. That guarantee is part of what the funding fee helps fund in the first place.

The exact gap varies by lender and by day, so it's worth getting quotes from a couple of VA-approved lenders rather than assuming the first rate offered is the best available. Even a small rate difference compounds meaningfully over a 30-year term, the same as it would on any other loan type.

Full vs partial entitlement

Most first-time VA borrowers have what's called full entitlement, meaning no loan limit applies and no down payment is required regardless of the loan size. If you already have an active VA loan, or have used your entitlement before without fully restoring it, you may have partial entitlement remaining, which can affect how much you can borrow with $0 down on a second VA loan.

This gets complex quickly for repeat users, particularly those keeping a previous VA-financed home as a rental rather than selling it. A VA-approved lender can pull your entitlement details directly and tell you exactly where you stand before you start house hunting, which is worth doing early if this applies to you.

Other costs a VA loan doesn't eliminate

The funding fee and skipped PMI get most of the attention, but a VA loan buyer still faces the same closing costs as anyone else — appraisal fees, title insurance, origination charges and escrow deposits for taxes and insurance. The VA does limit certain fees lenders can charge VA borrowers, which can modestly reduce total closing costs compared to a conventional loan, but it doesn't eliminate them.

Property taxes and homeowners insurance also aren't waived for VA borrowers — they're built into this calculator's monthly estimate the same way they would be for any other loan type, since local governments and insurers don't distinguish between loan programs.

VA loan versus FHA loan

Veterans eligible for a VA loan are almost always better off choosing it over an FHA loan, and the reasons stack up quickly once you compare them side by side. FHA loans require at least 3.5% down and charge an upfront mortgage insurance premium plus an ongoing monthly premium that, unlike conventional PMI, often can't be cancelled for the life of the loan unless you refinance out of it entirely.

A VA loan skips the down payment and the monthly premium completely, and its one-time funding fee is frequently smaller in dollar terms than FHA's combined upfront and lifetime mortgage insurance costs, especially over a loan held more than a few years.

The main scenario where FHA might still make sense for a veteran is a rare case where their VA entitlement is fully used up on other properties and can't be restored in time for a purchase.

VA loan versus conventional loan, dollar for dollar

Against a conventional loan, the comparison usually comes down to how much a borrower can put down. With 20% or more, a conventional loan avoids PMI entirely too, closing much of the gap — at that point the decision may hinge more on interest rate and funding fee specifics than a clear-cut winner.

Below 20% down, the math tends to favor VA loans clearly. A conventional borrower putting 5% down pays PMI every single month, often for years, with no equivalent one-time offset.

A VA borrower in the same position pays the funding fee once and never sees a PMI line item on their statement. Run both scenarios through this calculator and our standard mortgage calculator side by side to see the gap in dollar terms for your specific numbers.

The VA appraisal process

Every VA loan requires a VA-specific appraisal, conducted by an appraiser assigned through the VA's own system rather than one the lender or buyer picks directly. This appraisal does two things: it confirms the home's value the same way any appraisal would, and it checks the property against VA Minimum Property Requirements, a baseline standard covering safety, soundness and sanitary condition.

This second part occasionally surprises buyers used to conventional purchases. A home with a failing roof, exposed wiring, or a non-functioning well or septic system can hold up a VA loan until repairs are made, even if the buyer is willing to accept the property as-is.

It's not usually a dealbreaker, but it's worth factoring into any offer on an older home, particularly in a competitive market where sellers may prefer a conventional buyer with fewer inspection contingencies.

Common VA loan myths worth clearing up

One persistent myth is that VA loans take much longer to close than conventional loans. In practice, closing timelines are usually comparable once a lender is experienced with VA loans specifically — the appraisal requirement adds a step, not necessarily meaningful delay, when the lender knows the process well.

Another common misconception is that VA loans can only be used once. As covered above, that's not true — the benefit can be used repeatedly over a veteran's lifetime, with entitlement restored after a prior VA loan is paid off or sold, and sometimes available for a second loan even before that happens if enough entitlement remains.

A third myth: that sellers dislike VA offers. This was truer years ago than it is now. VA loans close at rates comparable to conventional financing today, and the appraisal requirement rarely derails a well-priced, reasonably maintained home.

The basic steps to get a VA loan

Getting started usually means requesting a Certificate of Eligibility first, either through a lender or directly through the VA's own portal, to confirm your entitlement and service history. From there, most veterans get pre-qualified or pre-approved with a VA-approved lender, which gives a realistic budget before house hunting begins in earnest.

Once a home is under contract, the VA appraisal gets ordered, underwriting reviews income, credit and the property's Minimum Property Requirements status, and closing follows much like any other purchase — signing documents, funding the loan, and receiving keys. The overall shape of the process is familiar to anyone who's bought a home before; the funding fee and appraisal specifics are really the main differences worth planning around.

Having more than one VA loan at once

It surprises a lot of borrowers to learn that having a second VA loan simultaneously is possible, not just sequential use over a lifetime. This typically comes up when a service member relocates under military orders and wants to buy a new primary residence while keeping a previous VA-financed home, often as a rental rather than selling it.

Whether this works, and how much you can borrow with $0 down on the second loan, depends on how much entitlement remains after the first loan and the conforming loan limit for the county where the new home is located.

Above that remaining entitlement, a down payment is generally required on the portion exceeding it. This is genuinely one of the more complex corners of VA loan benefits, and it's worth a direct conversation with a VA-approved lender rather than assuming either way from general information.

VA loans are assumable — what that actually means

One underused feature of VA loans is assumability: a qualified buyer can take over your existing VA loan's rate, term and remaining balance rather than getting a brand new loan of their own. In an environment where your original rate is well below current market rates, this can be a genuine selling point when it comes time to move.

The buyer assuming the loan doesn't need to be a veteran themselves, though a non-veteran assuming the loan means your entitlement stays tied up with that property until the loan is paid off or refinanced, which affects your ability to use full entitlement on a future purchase. A veteran buyer assuming the loan can substitute their own entitlement for yours, freeing up your benefit immediately.

Either way, assumption still requires lender approval and a credit review of the buyer — it's not an automatic transfer.

Using a VA loan for new construction

VA loans can finance new construction, though the process looks a bit different from a typical resale purchase. The builder generally needs to be VA-registered, and the property has to meet the same Minimum Property Requirements as any other VA purchase once it's complete, which the VA appraiser confirms before closing.

Many veterans find it simpler to use a conventional construction loan to fund the build itself, then refinance into a VA loan once construction is complete and the home is move-in ready, effectively using the cash-out or rate-and-term refinance path covered earlier. Either route is workable — the right choice usually comes down to which builders and lenders in your area are set up to handle VA construction financing directly.

The second-tier entitlement number, briefly

For veterans considering a second concurrent VA loan, lenders talk about "second-tier entitlement," which is the remaining VA guarantee available after a first loan. This figure, combined with the conforming loan limit in the new home's county, determines the maximum loan amount available with no down payment on that second property.

Conforming loan limits are set annually and vary by county based on local home prices, so the exact number differs depending on where you're relocating to. A lender pulling your Certificate of Eligibility can calculate this precisely, which is far more reliable than estimating it from general rules of thumb found online.

VA refinancing options beyond the IRRRL

Beyond the streamlined IRRRL covered earlier, VA borrowers also have access to a standard VA cash-out refinance, which can be used even if your current mortgage isn't a VA loan at all — it's one of the few refinance products that lets a borrower convert a conventional or FHA loan into a VA loan while pulling equity out as cash, subject to the usual credit and income underwriting.

This differs meaningfully from the IRRRL, which requires an existing VA loan and doesn't allow cash out — it's purely a rate-and-term tool built for speed and lower cost. Choosing between the two really comes down to your goal: lower your rate as simply and cheaply as possible, or access equity, potentially while also improving your rate along the way.

Disability compensation and your home loan

Beyond the funding fee exemption, veterans receiving VA disability compensation may qualify for additional home-related benefits worth knowing about, including property tax exemptions in many states that can meaningfully lower the ongoing cost of ownership shown in this calculator's tax field.

These state-level exemptions vary widely — some states offer a full property tax exemption for veterans with a 100% disability rating, while others offer partial relief tied to a sliding scale. It's worth checking with your state's veterans affairs office or county assessor directly, since this calculator uses a general tax rate input rather than modeling every state's specific veteran exemption rules.

Credit score and debt-to-income expectations

The VA itself doesn't set a minimum credit score, which surprises people used to conventional lending's hard cutoffs. In practice, though, individual lenders still set their own minimums, commonly somewhere in the 580 to 620 range, since the VA guarantee reduces but doesn't eliminate the lender's risk if a loan goes into default.

Debt-to-income expectations work similarly — there's no strict published ceiling the way FHA and conventional loans often have, but VA lenders typically look for a back-end DTI under 41%, sometimes higher with strong compensating factors like significant cash reserves or residual income well above the VA's own guidelines for your family size and region.

This residual income test is somewhat unique to VA lending, and it can occasionally qualify a borrower whose DTI ratio alone would raise concerns on a different loan type.

A lower credit score doesn't necessarily disqualify a VA applicant the way it might elsewhere, but it will typically affect the interest rate offered, similar to any other loan type. Shopping multiple VA-approved lenders remains worthwhile even with the VA guarantee in place, since underwriting overlays and pricing genuinely differ between institutions.

The occupancy requirement

VA loans are built for primary residences, not investment properties or vacation homes, and lenders require borrowers to certify they intend to occupy the property, typically within 60 days of closing. This is part of what makes the $0-down, no-PMI structure sustainable — the VA guarantee is meant to help veterans secure housing for themselves and their families, not fund rental portfolios.

There's some flexibility here for military-specific situations, such as a service member who buys a home, gets deployed shortly after, and can't personally occupy it as originally planned. This doesn't retroactively violate the loan terms the way an investor falsely claiming primary residence intent would. It's worth discussing your specific timeline with a VA-approved lender if deployment or a permanent change of station is likely soon after closing.

A realistic closing timeline

A typical VA purchase loan closes in roughly 30 to 45 days from a signed contract, broadly in line with conventional and FHA timelines.

The VA appraisal usually adds a few days compared to a conventional appraisal simply because it's ordered through the VA's own assignment system rather than picked directly by the lender, but an experienced VA lender builds this into their standard timeline rather than treating it as an unusual delay.

Sellers weighing multiple offers sometimes still assume a VA offer will close slower or fall through more easily than a conventional one. In a competitive situation, having your lender provide a strong pre-approval letter and, where possible, a note confirming their VA loan experience can help address that assumption directly rather than losing a good offer to an outdated perception.