What is the VA funding fee?

The VA funding fee is a one-time charge (1.25-3.3% of the loan) that helps sustain the VA loan program. First-time users with 0% down pay 2.15%. Veterans with service-connected disabilities are exempt.

Do VA loans require PMI?

No, VA loans never require private mortgage insurance (PMI), regardless of down payment amount. This is one of the biggest financial advantages of VA loans compared to conventional or FHA loans.

Who is eligible for a VA loan?

VA loans are available to active-duty military, veterans, National Guard members, reservists, and surviving spouses who meet service requirements. You need a Certificate of Eligibility (COE) from the VA.

VA Loan Calculator

Estimate your VA loan payment with no down payment required and no PMI. See the VA funding fee based on your usage history, down payment, and disability status, plus a year-by-year amortization schedule.

Last updated: May 15, 2026Reviewed by the CalcMountain editorial team

About this calculator

The VA loan is the strongest mortgage program available to eligible service members, veterans, National Guard, reservists, and qualifying surviving spouses. Key advantages: 0% down required, no PMI ever (even at 100% LTV), competitive interest rates, no minimum credit score set by VA (though lenders typically require 580–620), and a guaranteed lender-cap on closing costs. The trade-off is a one-time VA funding fee — 1.25%–3.3% of the loan, typically rolled into the financed amount.

This calculator computes the monthly VA loan payment, the funding fee based on first-time-use status and down payment, and the total cost over the life of the loan. Veterans rated 10%+ disability by VA are exempt from the funding fee — a substantial savings (often $5,000–$10,000+ on a typical purchase).

VA loans are also assumable: a future buyer who is VA-eligible can take over your VA loan at the original rate. In a high-rate environment, this can make your home more valuable to potential buyers, since they get an effective rate buydown without refinancing.

Formula

Base loan amount: Base = Home price − Down payment VA funding fee rates (Purchase, 2026): First-time use, 0% down: 2.15% First-time use, 5% down: 1.50% First-time use, 10%+ down: 1.25% Subsequent use, 0% down: 3.30% Subsequent use, 5% down: 1.50% Subsequent use, 10%+ down: 1.25% 10%+ disability rated: 0% (exempt) Funding fee (financed): Fee = Base × Fee rate Total financed: Loan = Base + Fee Monthly Principal & Interest: M = Loan × [ r(1+r)^n ] / [ (1+r)^n − 1 ] Where: r = Monthly rate (APR/12) n = Total monthly payments Example: $375K home, 0% down, first-time use, no disability exemption Base loan: $375,000 Funding fee 2.15%: $8,063 Total financed: $383,063 at 5.75% for 30 years Monthly P&I: ~$2,235

How to use this calculator

Enter the home price.
Enter down payment if any. 0% is standard; even a small down payment reduces the funding fee rate from 2.15% to 1.50%.
Enter the interest rate. VA rates often run 0.25–0.50% below conventional for the same credit profile, since VA backs the loan.
Choose loan term — 30 years is standard.
Indicate whether this is your first VA loan use. Second and subsequent uses have a higher funding fee unless you put down 5%+.
Indicate disability status — VA-rated 10%+ service-connected disability waives the funding fee entirely.
Compare the monthly payment to a conventional loan with PMI or an FHA loan with MIP. For eligible borrowers, VA almost always wins.

Worked examples

First-time use, 0% down

$375K home, no down payment, first VA loan, no disability exemption. Base loan: $375,000 Funding fee 2.15%: $8,063 (financed) Total financed: $383,063 at 5.75% for 30 years Monthly P&I: $2,235 Plus property tax + insurance escrow ≈ $400-500 Total monthly: ~$2,650 Same purchase as conventional with 10% down + PMI would require $37,500 cash AND a higher monthly payment.

Disability-exempt veteran

Same purchase but borrower is 30% service-connected disabled. Funding fee: $0 (exempt) Total financed: $375,000 Monthly P&I: $2,189 Roughly $46/month savings, plus $8,063 not added to principal — savings compound across decades.

When to use this calculator

Use this calculator if you're VA-eligible and shopping for a home. VA loans are almost always the right choice for eligible borrowers because:

- 0% down is achievable even on substantial purchases (unlike FHA which requires 3.5%, conventional 5–20%) - No PMI/MIP eliminates the recurring monthly cost - Lower interest rates from VA backing - Assumable: increases home resale value - No prepayment penalty - Strict closing-cost caps protect the borrower

When VA might NOT be the right choice: - High-cost area exceeding VA county limits (limits removed for full entitlement borrowers in 2020, but partial entitlement still has limits) - You're combining with other loan products on the same property - You have substantial cash for 20%+ down AND want to avoid the funding fee — a conventional loan with no PMI might cost slightly less

Get a Certificate of Eligibility (COE) before house-hunting. Most lenders pull this electronically, but having it confirmed early avoids surprises during the loan process.

Common mistakes to avoid

Skipping VA when eligible. Many veterans default to conventional without realizing VA is dramatically better.
Forgetting the funding fee on first-time vs subsequent use. Second VA loan use with 0% down is 3.30% — significant.
Not knowing about the disability exemption. Veterans with VA-rated 10%+ disability are exempt entirely; many don't realize this.
Assuming VA loans are slow. The application process is similar to other mortgages; lenders familiar with VA loans close them on the same timeline.
Assuming VA loans cap your home price. Since 2020, full-entitlement borrowers have no VA loan limits — limits only apply to partial entitlement (multiple active VA loans).
Not using the assumability feature as a selling point. In high-rate environments, your VA loan at a low rate is a real asset to a future eligible buyer.

Frequently Asked Questions

Sources & further reading

VA home loan benefits — U.S. Department of Veterans Affairs
VA funding fee — U.S. Department of Veterans Affairs
Certificate of Eligibility — U.S. Department of Veterans Affairs

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VA Loan Calculator

Inputs

Home Price

Down Payment

VA allows 0% down

Interest Rate

Loan Term (Years)

First Time VA Loan Use

Disability Funding Fee Exempt

Results

Monthly Payment

$2,235

VA Funding Fee

$8,062 (2.15%)

Total Interest

$421,699

No PMI Savings

$8,813

Year-by-Year Breakdown

Year	Start Balance	Principal	Interest	End Balance
1	$383,062.50	$4,927.81	$21,897.57	$378,134.69
2	$378,134.69	$5,218.75	$21,606.63	$372,915.93
3	$372,915.93	$5,526.87	$21,298.52	$367,389.07
4	$367,389.07	$5,853.17	$20,972.21	$361,535.89
5	$361,535.89	$6,198.74	$20,626.64	$355,337.15
6	$355,337.15	$6,564.71	$20,260.67	$348,772.44
7	$348,772.44	$6,952.29	$19,873.09	$341,820.14
8	$341,820.14	$7,362.76	$19,462.63	$334,457.39
9	$334,457.39	$7,797.45	$19,027.93	$326,659.93
10	$326,659.93	$8,257.81	$18,567.57	$318,402.12
11	$318,402.12	$8,745.35	$18,080.03	$309,656.77
12	$309,656.77	$9,261.68	$17,563.71	$300,395.09