How the VA mortgage calculator works
VA loans help eligible service members buy with no down payment in many cases. This calculator estimates your full PITI payment: principal and interest, property tax, home insurance, HOA fees, and the one-time VA funding fee that most borrowers finance into the loan.
Compare against the mortgage calculator with taxes and insurance for conventional loans, or the mortgage calculator for principal and interest only.
VA funding fee schedule from 1 April 2024
- First use, less than 5% down: 2.15%
- First use, 5% to 9.99% down: 1.50%
- First use, 10% or more down: 1.25%
- Subsequent use, less than 5% down: 3.30%
- Subsequent use, 5% or more down: 1.25% to 1.50%
Worked example: $350,000 home, 0% down, first use
- Base loan: $350,000 at 6.5% over 30 years.
- Funding fee: 2.15% of $350,000 = $7,525, financed into the loan.
- Total loan: $357,525.
- PITI: about $2,260 principal and interest, plus $350 tax and $100 insurance, for roughly $2,710 per month.
Frequently asked questions
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation, Purple Heart recipients on first use, and certain surviving spouses may be exempt. Select Yes under funding fee exempt to model a zero fee.
Should I finance the funding fee?
Most borrowers roll the fee into the loan to preserve cash at closing. Paying it upfront lowers your monthly payment and total interest but requires more cash on hand.
Does down payment change the fee?
Yes. Putting 5% or 10% down reduces the funding fee rate on both first and subsequent use. Even small down payments can lower lifetime borrowing cost.
Are PMI or mortgage insurance included?
VA loans do not require monthly PMI. The funding fee is a one-time charge (often financed) that replaces conventional mortgage insurance for eligible borrowers.
Resources and references
The formulas and methods in this calculator were checked against these independent sources.