VA Loan Calculator

A VA loan is a mortgage backed by the US Department of Veterans Affairs and originated by VA-approved private lenders. Eligibility is service based: active-duty service members, veterans who meet length-of-service minimums (generally 90 days during wartime or 181 days during peacetime), members of the National Guard and Reserves with at least 6 years of service or 90 days of active duty, and surviving spouses of service members who died on active duty or from a service connected disability. Eligibility is confirmed by a Certificate of Eligibility (COE) from the VA before closing. Unlike FHA or conventional financing, the VA loan benefit does not expire and can be used more than once over a lifetime.

The funding fee is a one-time charge that helps support the VA loan program. For loans closing on or after April 7, 2023, this calculator's purchase-loan model uses 2.15% for a first use with less than 5% down, 1.5% with 5% to 9.99% down, and 1.25% with 10% or more down. For a subsequent use, its under-5% rate is 3.3%, while the 5% and 10% tiers remain 1.5% and 1.25%. The actual VA schedule also differs for National Guard and Reserve borrowers and for refinance or other loan types. The fee is calculated on the base loan amount (home price minus down payment), and this calculator finances it into the loan rather than charging it in cash at closing.

VA funding-fee exemptions can apply to veterans receiving compensation for a service-connected disability, people entitled to that compensation but receiving retirement or active-duty pay instead, and certain surviving spouses receiving Dependency and Indemnity Compensation. Purple Heart recipients serving on active duty can also qualify. VA determines the exemption and records it on the Certificate of Eligibility. An exempt borrower may avoid a down-payment requirement, funding fee, and monthly mortgage insurance, but should still compare the rate, closing costs, and lender terms with other options.

The funding fee replaces it. On an FHA loan you generally pay 1.75% upfront MIP plus annual MIP ranging from 0.15% to 0.75%, depending on the mortgage term, base loan amount, and original loan-to-value ratio. Annual MIP lasts for either 11 years or the full loan term. On a conventional loan under 20% down, you may pay PMI until the loan reaches its cancellation threshold. The VA calculator compares its modeled lifetime cost with an FHA scenario that includes the minimum down payment, financed upfront MIP, and annual MIP based on the declining average outstanding balance.

An eligible borrower with full entitlement may obtain a VA-backed purchase loan without a VA-imposed down-payment requirement or county loan limit, but the lender still applies credit, income, appraisal, and underwriting rules. Partial entitlement can make county limits relevant to the guaranty calculation. Funding-fee status and lender terms also matter, so confirm eligibility and cash requirements with the Certificate of Eligibility and Loan Estimate.