VA Loan Calculator — 0% Down But Don't Forget the Funding Fee

If you have served, VA is hands-down one of the best options in the U.S. mortgage space. Zero down, no monthly PMI. The funding fee is what many veterans forget to budget. This VA calculator shows you what your VA loan really looks like with that fee rolled in. You pick down payment, funding fee type and whether you are exempt. It does the math in your browser for budgeting.

Why VA Is Different - No PMI Ever

VA does not charge PMI, ever. Instead, there is a one-time funding fee. First-time use, zero down is typically 2.15% of base loan. Put 5% down, it drops to 1.5%. Put 10% down, 1.25%. Subsequent use zero down is typically 3.3%. If you are receiving VA disability compensation, you are often exempt — that saves thousands. That fee is usually financed, so your loan amount is base loan plus funding fee.

How To Use This VA Calculator

Enter $400,000 home price. Select first-time use 0% down 2.15% and rate 6.5%. Base loan $400,000 plus funding fee $8,600 = $408,600 financed loan. P&I at 6.5% 30-year is about $2,582.95 per month. No PMI. Add taxes $300 per month ($3,600 annual) and insurance $150 ($1,800 annual) and total about $3,032.95 per month. If you are exempt, select 0% exempt and watch that $8,600 disappear and payment drop to about $2,528 per month P&I.

Real Example - $400k First-Time Zero Down

$400,000 price, 0% down, base loan $400,000, funding fee 2.15% = $8,600 financed, total loan $408,600. At 6.5% 30-year, P&I about $2,582.95. Add $400 tax and $150 insurance = about $3,132.95. Compare that to FHA same scenario — FHA would have $200+ more per month with MIP that stays. VA saves monthly because no PMI, even with funding fee financed.

Second example: $500,000 price, 0% down, subsequent use 3.3% fee = $16,500, financed loan $516,500, at 6.5% 30-year P&I about $3,265.11, plus taxes and insurance. If exempt, fee $0, loan $500,000, P&I $3,160.34. Exempt saves $104.77 per month P&I and $16,500 in loan amount.

VA Funding Fee Table - How Fee Is Determined - All Conditions

Funding fee can be financed into loan or paid in cash. Financing increases loan, P&I and total interest but reduces cash to close. Reserves, National Guard and active duty have same fee structure under current guidance. Check current VA funding fee chart from VA for latest rates as they may update.

VA Loan Formula - How We Calculate - Verified

M = P×[r(1+r)^n]/[(1+r)^n−1]

P is financed loan = Base Loan + Funding Fee. Base Loan = Price − Down Payment. Funding Fee = Base Loan × Fee%. r = annual rate/12/100, n = term×12. Total monthly = P&I + Tax/12 + Insurance/12 + HOA. No PMI. Cash to Close = Down + 2.9% of price as closing cost assumption. If funding fee is financed, cash to close does not include fee. This calculator assumes financing of fee, which is most common.

What Affects Your VA Monthly Payment? 5 Key Factors

• Down Payment: VA allows 0% down. 5% or 10% down lowers funding fee % and base loan.
• Funding Fee Type: First use vs subsequent use and exempt status change fee from 0% to 3.3%. Biggest lever after rate.
• Interest Rate: Market rate affects P&I directly. VA rates often competitive.
• Loan Term: 30-year lower P&I but more total interest vs 15-year.
• Property Taxes, Insurance, HOA: Vary by location. Add verified figures for true housing payment.

VA vs FHA vs Conventional - Quick Comparison

VA: 0% down allowed, no PMI ever, one-time funding fee 0% to 3.3% financed, often exempt for disabled veterans. Best monthly payment for eligible borrowers due to no PMI.

FHA: 3.5% down minimum, requires 1.75% UFMIP plus annual MIP 0.55% to 0.85% that typically stays for life with less than 10% down.

Conventional: 3% to 5% down possible, PMI required if less than 20% down but can be removed at 80% LTV, no upfront funding fee.

Tip: Even if you can do 5% down on VA, run 0% vs 5% comparison. Fee drops from 2.15% to 1.5% at 5% down, and monthly may be lower with a little down despite higher cash to close.

Calculator Methodology - Transparent - All Conditions Verified

1. Inputs: Home price, down %, funding fee %, term, rate, annual tax, annual insurance, HOA.
2. Down: Down = Price × Down%/100, Base Loan = Price − Down.
3. Fee: Fee = Base Loan × Fee% /100, Financed Loan = Base Loan + Fee.
4. P&I: M = P×[r(1+r)^n]/[(1+r)^n-1] where P=financed loan, r=annual/12/100, n=term×12. If 0% rate, loan/n.
5. Total: Total = P&I + Tax/12 + Insurance/12 + HOA. No PMI.
6. Cash: Cash to close = Down + 2.9% of price as closing assumption. Fee financed, so not in cash unless you choose to pay cash.
7. Privacy: Calculation in browser, no server storage.
8. Conditions Tested: 0% down first 2.15%, subsequent 3.3%, 5% down 1.5%, 10% down 1.25%, exempt 0%, 100% down loan zero, 0% rate edge — All results match standard amortization.

Important Limitations

This tool gives you a quick math-based estimate so you can budget smarter. It is not a loan approval, not a rate lock, and not your final Closing Disclosure. Taxes, insurance, county fees, HOA and lender pricing change. Funding fee rates change by VA guidance. Loan limits and entitlement affect approval. For exact numbers, always check with your VA-approved lender and review Loan Estimate and Closing Disclosure.

Frequently Asked Questions - Expanded

Who pays VA funding fee?

Most non-exempt veterans, active duty, National Guard and Reserves. Rates vary by first vs subsequent use, down payment % and service type. Disabled veterans receiving VA compensation are often exempt from funding fee.

Is VA only for first-time buyers?

No. You can use VA multiple times as long as you have remaining entitlement. You can even have more than one VA loan at once if you have remaining entitlement and meet lender and VA requirements.

Does VA have PMI?

No monthly PMI ever on VA loans. That is the biggest advantage over FHA and low-down conventional. VA funding fee is one-time fee that replaces monthly mortgage insurance.

Can VA funding fee be waived?

Yes, if you are receiving VA disability compensation, are a surviving spouse of a veteran who died in service or from service-connected disabilities, or meet other exemption criteria. Check VA Certificate of Eligibility for exemption status.

Does VA have income limits or loan limits?

No income limits. No official VA loan limit for qualified borrowers with full entitlement, but lenders may have overlays and county loan limits affect entitlement calculation for subsequent use. Check VA loan limit guidance.

What is cash to close for VA?

Down payment plus estimated closing costs. VA allows 0% down, so cash to close may be only closing costs if funding fee is financed. This calculator uses 2.9% of price as closing cost assumption for estimate.

Does this calculator include taxes and insurance?

Yes. Enter annual taxes and insurance. Calculator divides by 12 and adds to P&I and HOA for total estimate.