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What the VA mortgage calculator does
The Department of Veterans Affairs does not lend money. It guarantees part of a loan made by a private lender, which lets eligible service members, veterans and some surviving spouses borrow with no down payment and no monthly mortgage insurance. Most VA calculators ignore the single item that moves the price most: the funding fee. This one puts it front and center and shows what it does to your balance, your payment and your total cost.
How it works
Set your price and down payment, then choose first-time or repeat use. The calculator looks up the funding fee percentage for that combination, applies it to the base loan, and either adds it to your balance or treats it as cash due at closing. If you tick the exempt box, the fee drops to zero. Last, it runs the same house through an FHA calculation at the higher of your down payment or 3.5%, so you can see what VA saves you each month.
How the funding fee and payment are calculated
The fee is base loan × fee percentage. On a purchase, the percentage is 2.15% for first use with under 5% down, 3.3% for repeat use with under 5% down, 1.5% for 5% to under 10% down, and 1.25% for 10% or more down. Your payment then follows the standard formula on the loan amount, plus tax, insurance and any HOA dues.
Worked example: $400,000, no down payment, 6.25%
The funding fee is 2.15% of $400,000, or $8,600. Financed, your loan becomes $408,600 and principal and interest is $2,515.82. With tax at 1.1% ($366.67) and $150 of insurance, the payment is about $3,032. Pay the $8,600 in cash instead and principal and interest falls to $2,462.87, about $53 a month lower. A veteran who is exempt from the fee pays about $2,980 from day one.
Points that matter for VA buyers
Putting some money down can beat the fee
The fee falls a full 0.65 percentage points at 5% down. On a $400,000 house that is a $2,600 saving on a $20,000 deposit, in addition to the smaller loan. Try 5% and 10% in the down payment field and watch the fee change.
Seller help
VA rules allow sellers to pay some of your closing costs and concessions, generally up to 4% of the price for certain items, which can be a bargaining chip in a negotiation.
Rates and comparison
VA rates are often quoted a little below conventional rates, but you need actual offers to see it. Compare your result with the FHA loan calculator and the main mortgage calculator. If you later want to lower the rate, price it on the refinance calculator.
Estimate only. Funding fee rates here apply to purchase loans and can change; confirm with a VA-approved lender and your Certificate of Eligibility.
Frequently asked questions
Is there monthly mortgage insurance on a VA loan?
No. Instead of monthly insurance, VA loans charge a one-time funding fee. That fee can be paid at closing or financed into the loan, and it is the main reason a VA payment tends to come in lower than an FHA payment on the same house.
How much is the VA funding fee?
For a purchase loan it depends on your down payment and whether you have used the benefit before. With less than 5% down, first use is 2.15% and later use is 3.3%. With 5% to under 10% down it is 1.5%, and with 10% or more down it is 1.25%. Cash-out refinances and other loan types use different rates.
Who does not have to pay the funding fee?
Veterans who receive VA disability compensation are exempt, and so are some surviving spouses. If you believe you qualify, ask your lender to check your Certificate of Eligibility, and use the exempt box in the calculator to see the difference.
Do I need a down payment for a VA loan?
Not usually. Eligible borrowers can finance up to the full purchase price. A down payment still helps: at 5% down the funding fee drops from 2.15% to 1.5%, and at 10% it drops to 1.25%, so cash upfront can pay for itself.
Is there a maximum VA loan amount?
Borrowers with full entitlement generally have no VA-set cap, but lenders apply their own limits, and a large loan without a down payment must still fit your income and credit. Partial entitlement, for example after a previous VA loan, can limit how much the VA will guarantee.
What else do lenders check on a VA loan?
Alongside a debt-to-income ratio, VA lenders look at residual income, meaning the money left each month after major obligations. Your Certificate of Eligibility and a VA appraisal are also part of the process.