VA Loan Calculator

The formula

• Down payment = home price × down payment percent (0% is allowed, the VA headline benefit)
• Base loan amount = home price − down payment
• VA funding fee = base loan × fee rate, where the 2026 fee rate depends on use and down payment: first use 2.15% (<5% down), 1.5% (5 to 10% down), 1.25% (10%+ down); subsequent use 3.3% (<5% down), 1.5% (5 to 10% down), 1.25% (10%+ down); 0% with a service connected disability exemption
• Total VA loan = base loan amount + VA funding fee (usually financed, not paid in cash)
• Monthly principal & interest = P × r(1+r)^n / ((1+r)^n − 1), where P is the total VA loan, r = annual rate ÷ 12, n = total payments
• True monthly VA payment = P&I + property taxes + homeowner's insurance (no monthly mortgage insurance on VA loans)

A worked example

A veteran buys a $400,000 home with $0 down, the classic VA move. First time VA use means a 2.15% funding fee: $400,000 × 2.15% = $8,600, rolled into the loan for a total of $408,600. At a 6.25% 30 year rate the P&I is about $2,516 a month. Add $330 in property tax and $125 in insurance and the true payment lands near $2,971, with zero mortgage insurance and zero down out of pocket. If the same veteran had a service connected disability rating, the $8,600 fee drops to $0 and the payment falls by roughly $53 a month. That is why the exemption question matters: it is the single biggest lever on a VA loan's cost.

More about the VA Loan Calculator

What a VA loan actually is

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active duty service members, and some surviving spouses.

The headline benefits: 0% down payment allowed, no monthly mortgage insurance, and competitive rates, no other mainstream loan program combines all three.

You need a Certificate of Eligibility (COE) and the home must be your primary residence and meet VA appraisal standards.

The VA funding fee, explained

The funding fee replaces mortgage insurance: a one time charge rolled into the loan, so you rarely pay it in cash.

2026 rates for purchase loans: first use 2.15% with less than 5% down, 1.5% with 5 to 10% down, 1.25% with 10% or more down; subsequent use 3.3%, 1.7%, and 1.5% respectively.

Veterans with a service connected disability (and some surviving spouses) are fully exempt, the fee drops to zero.

Who qualifies for a VA loan

Generally: 90+ days of active wartime service, 181+ days of peacetime service, 6+ years in the Guard/Reserves, or a qualifying surviving spouse status.

No official minimum credit score from the VA, but most lenders want 620+ for the best rates.

The VA also checks residual income, money left after housing costs and debts, which is stricter than a plain debt to income ratio.

VA loan limits for 2026

With full entitlement, there is no VA loan limit. You can borrow above the conforming ceiling with $0 down.

With partial entitlement (a prior VA loan still outstanding), limits follow the conforming loan ceiling by county.

Entitlement can be restored when you sell the home and pay off the VA loan, letting you reuse the benefit.

VA vs FHA vs conventional

VA beats FHA for eligible borrowers almost every time: 0% down is allowed (FHA needs 3.5%) and there is no monthly insurance premium.

VA beats conventional when your down payment is small, no PMI at any down payment level, including zero.

Conventional can edge ahead with 20% down and top tier credit, where the VA funding fee on subsequent use (3.3%) outweighs the savings.

Mistakes to avoid with VA loans

Don't forget the funding fee is financed, your starting balance is higher than price minus down payment, and subsequent use fees are steep.

Don't assume you only get one VA loan, entitlement is reusable, and you can hold more than one VA loan in some cases.

Don't skip the disability exemption check, even a 10% service connected rating wipes the fee out entirely.

Worked example: the funding fee inside your payment

Suppose you buy at $350,000 with nothing down on a first use VA loan. The funding fee is 2.15 percent of the loan amount: 350,000 × 0.0215 = $7,525. Financed the usual way, your loan becomes $357,525 before interest is even calculated. That single line is why a VA payment never quite matches a plain mortgage calculator run on the purchase price alone.

At a hypothetical 6.5 percent rate over 30 years, that $357,525 loan costs about $2,259.80 a month in principal and interest. The same loan without the fee would be $2,212.24, so financing the fee adds roughly $47.56 a month. Paying the $7,525 in cash at closing instead removes that monthly difference, at the cost of cash you might rather keep for moving and repairs.

First use versus subsequent use: the same house, a bigger fee

Use the entitlement a second time with no down payment and the fee jumps to 3.3 percent. On that same $350,000 loan the fee becomes $11,550, exactly $4,025 more than the first use fee, and the financed balance climbs to $361,550. Nothing about the house changed; the price of the benefit rose because you have drawn on it before.

Two situations escape the fee entirely or shrink it. Veterans receiving compensation for a service connected disability are exempt, which is why the calculator asks about disability status before quoting a fee. And making a down payment moves you into a lower fee band, so even a modest deposit can cut both the fee percentage and the balance it gets added to.

Estimation mistakes that make VA numbers lie

The commonest error is comparing a VA quote against a conventional quote that quietly includes private mortgage insurance. VA loans carry no monthly PMI, so a conventional loan with a slightly lower rate can still cost more each month once its insurance premium is added. Compare total monthly cost, principal, interest, taxes, insurance and PMI, or you are comparing half loans.

The second error is forgetting that the funding fee is calculated on the loan amount, not the purchase price, when a down payment is involved. Put 10 percent down on that $350,000 home and the loan is $315,000, so even the percentage is applied to a smaller base. Run the calculator with your real deposit, not the headline price, before judging the fee.

How to use the VA Loan Calculator

1. Enter the home price and your down payment percent (0% is fine for VA).
2. Enter the interest rate and loan term, then pick first or subsequent VA use.
3. Answer the disability exemption question, it zeroes out the funding fee.
4. Hit Calculate to see the funding fee, total loan, and true monthly VA payment.