The VA loan is the strongest mortgage product in America, full stop: zero down payment, no monthly mortgage insurance ever, rates typically below conventional, and underwriting built around residual income rather than rigid ratios. The one real cost is the funding fee — a single financed charge of 0–3.3% depending on usage and down payment. This calculator computes the true VA payment and puts it side-by-side with FHA and conventional so the benefit is measured in dollars, not marketing.
The Funding Fee Table (2025)
| Down payment | First use | Subsequent use |
|---|
| 0% – 4.9% | 2.15% | 3.30% |
| 5% – 9.9% | 1.50% | 1.50% |
| 10%+ | 1.25% | 1.25% |
Exempt entirely: veterans receiving disability compensation (10%+ rating), Purple Heart recipients on active duty, and eligible surviving spouses — roughly a third of VA borrowers pay no fee at all. The fee is almost always financed into the loan, as this calculator assumes.
Why No Mortgage Insurance Changes Everything
At 0% down, an FHA or conventional structure would demand $150–$300/month of insurance indefinitely or until 20% equity. The VA guaranty replaces all of it. On the default $350,000 example, the VA payment beats the FHA equivalent by roughly $180/month while requiring $12,250 less cash — over a six-year stay, that's a five-figure benefit. That is what the funding fee buys, and why using a conventional loan when VA-eligible deserves an actual calculation, not a habit.
Eligibility and the Paperwork
- Who: veterans meeting service minimums, active-duty (90+ days), most National Guard/Reserve (6 years or qualifying active service), and un-remarried surviving spouses of service-connected deaths.
- The COE: the Certificate of Eligibility proves entitlement — lenders pull it electronically in minutes; you can also get it via VA.gov.
- Entitlement, not a one-shot: the benefit is reusable and restorable after payoff; with full entitlement there is no loan limit — the lender's qualification is the ceiling, not the VA's.
- Occupancy: primary residences only (60-day move-in rule); multi-unit up to 4 units works if you occupy one.
VA Myths That Cost Veterans Money
- "Sellers hate VA offers" — dated: VA appraisals now run on normal timelines, and repair standards mirror FHA's. A strong VA offer with a good agent competes fine.
- "VA rates are higher" — the opposite: VA rates typically run 0.125–0.375% below conventional; the guaranty is that valuable to lenders.
- "Save the benefit for later" — entitlement is reusable; using it today doesn't spend it forever.
- "Zero down means underwater" — starting at 100% LTV is the trade for keeping your cash; the funding fee exemption and lower payment offset much of the risk. Sensible either way to keep reserves — see the Affordability Calculator.
How to Use the Calculator
- Enter price, down payment (0% is the point), your quoted rate and the funding-fee tier that matches your situation.
- Read the payment and the three-way comparison table — the VA column should win by a visible margin; if a lender's quote doesn't, shop harder.
Frequently Asked Questions
Do I need perfect credit for a VA loan?
No — the VA sets no minimum score; most lenders want 580–620+. VA underwriting emphasizes residual income (money left after bills), which approves borrowers rigid DTI math would reject.
Can I use a VA loan more than once — or twice at once?
Reusable for life, and with remaining entitlement you can even hold two VA loans simultaneously (e.g., after a PCS move). Subsequent zero-down uses pay the higher 3.3% fee unless exempt.
Is there really no loan limit?
With full entitlement, correct — no VA-imposed cap since 2020. Lenders still qualify your income and may set jumbo-style overlays on very large loans.
What closing costs can a VA buyer pay?
The VA caps lender charges (1% origination cap) and bars certain fees to the borrower; sellers may pay up to 4% in concessions. VA borrowers routinely close with less cash than any other program.
How does the VA appraisal differ?
It includes Minimum Property Requirements (safety, soundness, sanitation) like FHA's, plus the Tidewater process that lets agents submit comps before a low value is finalized. Timelines are now comparable to conventional.
What is an IRRRL?
The Interest Rate Reduction Refinance Loan — the VA streamline: refinance an existing VA loan to a lower rate with minimal documentation, no appraisal in most cases, and a reduced 0.5% funding fee.
Is my information private?
Yes — every input stays in your browser.
The VA loan is an earned benefit that outperforms everything a bank sells to civilians — zero down, no mortgage insurance, better rates, reusable for life. If you're eligible and a lender steers you conventional, make them beat the VA column in this table first, in writing.
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