VA Loan Calculator
Estimate your monthly VA home loan payment, including the VA funding fee, property tax, insurance and HOA dues, with no mortgage insurance.
Results
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Quick Answer
A VA loan payment is principal and interest on the loan plus the VA funding fee if you finance it, plus taxes and insurance. There is no mortgage insurance. With a $350,000 home, no down payment, first use and a 6.25% 30-year rate, the funding fee is 2.15% ($7,525.00) and principal and interest is about $2,201.34 a month.
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Table of Contents
- VA Loan Calculator
- Quick Answer
- Related Calculators
- How This VA Loan Calculator Works
- How to Use the VA Loan Calculator
- Core Formulas
- Key Terms
- Worked Example
- Real-Life Examples
- VA Loan vs FHA vs Conventional
- VA Funding Fee Chart (Purchase Loans)
- Ways to Lower Your VA Loan Cost
- Common Mistakes to Avoid
- Frequently Asked Questions
- References & Sources
How This VA Loan Calculator Works
Enter the home price, any down payment, the interest rate and the loan term. Choose whether this is your first VA loan, and whether you will add the funding fee to the loan. The calculator finds the funding fee from the VA chart, the loan amount and the monthly payment, then adds property tax, insurance and HOA dues.
Quick explanation: VA loans for eligible Veterans and service members often need no down payment and no monthly mortgage insurance.
- Funding fee: a one-time fee of 1.25% to 3.3% of the loan.
- Exempt: no fee for those receiving VA disability compensation.
- No PMI: a big saving compared with low-down-payment conventional loans.
How to Use the VA Loan Calculator
- Enter the home price and any down payment.
- Enter the interest rate and choose the loan term.
- Choose first use, after first use or exempt.
- Choose whether to add the funding fee to the loan.
- Enter property tax, insurance and HOA dues, then press Calculate.
Core Formulas
- Base loan: home price − down payment
- Funding fee: base loan × fee % from the VA chart
- Loan amount: base loan + funding fee, if financed
- Monthly P&I: L × r ÷ (1 − (1 + r)^−n)
- Total payment: P&I + property tax ÷ 12 + insurance ÷ 12 + HOA
r is the monthly rate (annual rate ÷ 12) and n is the number of monthly payments.
Key Terms
- VA funding fee: a one-time fee paid on a VA-backed loan that helps fund the program.
- Certificate of Eligibility (COE): a document that shows a lender you qualify for a VA loan.
- Entitlement: the amount VA will guarantee on your loan.
- PMI: private mortgage insurance, which VA loans do not require.
- Escrow: money collected monthly to pay property tax and insurance.
Worked Example
This is the example VA.gov uses: a first-time VA buyer purchases a $200,000 home with $10,000 down (5%).
- Base loan = $200,000 − $10,000 = $190,000
- Funding fee = 1.5% × $190,000 = $2,850.00
- With the fee financed at 6.5% for 30 years, principal and interest is about $1,218.94 a month
Real-Life Examples
- Zero down: a $350,000 home at 6.25% for 30 years has principal and interest of about $2,201.34 with the first-use fee financed.
- Second VA loan: with no down payment, the fee rises to 3.3%, or $11,550.00 on the same home.
- Exempt Veteran: with VA disability compensation, no fee is due, so the payment is about $2,155.01.
- 10% down: $35,000 down cuts the fee to 1.25% ($3,937.50).
VA Loan vs FHA vs Conventional
- VA loan: 0% down possible, no monthly mortgage insurance, one-time funding fee. For eligible Veterans, service members and some surviving spouses.
- FHA loan: 3.5% down minimum, with upfront and monthly mortgage insurance.
- Conventional loan: as little as 3% down, but PMI is usually required below 20% down.
VA Funding Fee Chart (Purchase Loans)
Source: VA.gov. No fee for Veterans receiving VA compensation for a service-connected disability, and some others.
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Ways to Lower Your VA Loan Cost
- Put 5% or 10% down: the funding fee drops to 1.5% or 1.25%.
- Pay the fee at closing: you avoid paying interest on it.
- Compare lenders: VA does not set rates, so shop around.
- Ask about seller credits: sellers can pay closing costs, and concessions can be up to 4% of the home’s value.
Common Mistakes to Avoid
- Forgetting the funding fee. It adds 1.25% to 3.3% to the loan.
- Leaving out taxes and insurance. They can add hundreds of dollars a month.
- Assuming VA sets the rate. Lenders set rates, so compare offers.
- Missing the exemption. If you receive VA disability compensation, you do not pay the fee.
- Ignoring closing costs. Budget for appraisal, title and lender fees too.
Frequently Asked Questions
A one-time fee on VA-backed loans. For a first-time purchase with less than 5% down, it is 2.15% of the loan.
Yes. You can finance it or pay it at closing. Financing means you pay interest on it.
Veterans receiving VA compensation for a service-connected disability, some surviving spouses receiving DIC, and some others listed on VA.gov.
Usually no, if you have full entitlement and the home appraises for the price.
No. VA loans do not require monthly mortgage insurance.
For Veterans with full entitlement, VA has no loan limit, but lenders still check income and credit.
3.3% with less than 5% down, 1.5% with 5% or more, and 1.25% with 10% or more.
The lender. VA guarantees part of the loan but does not set the rate.
Yes. VA lets sellers pay closing costs, and limits seller concessions to 4% of the home’s reasonable value.
It may be, in some cases. Ask a tax professional about your situation.
Yes. You can use the benefit again, but the funding fee is higher after first use if you put less than 5% down.
Request a Certificate of Eligibility from VA, then apply with a VA-approved lender.
References & Sources
| Source | Used For | Link |
|---|---|---|
| VA.gov, VA funding fee and loan closing costs | Funding fee rates, exemptions and the $200,000 example. | https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/ |
| VA.gov, VA-backed home loans | Eligibility and how VA home loans work. | https://www.va.gov/housing-assistance/home-loans/ |