The VA home loan is the strongest mortgage product in America for those who qualify: zero down payment, no monthly mortgage insurance ever, and competitive rates backed by the Department of Veterans Affairs. The one cost most buyers miss is the VA funding fee — a one-time charge that varies with your down payment and whether you have used the benefit before, and which is waived entirely for many disabled veterans. This calculator builds the real payment with the funding fee included.
VA Loan Calculator
Estimate your VA loan payment including the VA funding fee. No PMI, ever — that is the VA advantage.
2026 VA funding fee rates. First use: 2.15% (0% down), 1.50% (5–9.99% down), 1.25% (10%+ down). Subsequent use: 3.30% / 1.50% / 1.25%. Exempt borrowers pay 0%. Estimates only — not a loan offer.
How to use this calculator
Enter the home price. Down payment is optional — VA allows $0 down, but any down payment lowers the funding fee. Pick your term and rate, choose first vs subsequent use of the VA benefit, and add annual property tax plus insurance. If you have a 10%+ VA disability rating, a Purple Heart, or are a qualifying surviving spouse, check the exemption box — your funding fee drops to zero.
What the VA funding fee actually is
The funding fee keeps the VA loan program self-sustaining at no cost to taxpayers. It is a one-time fee, almost always rolled into the loan rather than paid in cash, so it slightly increases the amount you finance. 2026 rates:
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% to 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Exempt borrowers pay 0%. On a $400,000 zero-down first-use loan, the fee is $8,600 financed into the loan. With a 10%+ disability rating, that $8,600 disappears entirely.
Why no PMI is the real superpower
Conventional borrowers under 20% down pay private mortgage insurance — often $150–$400/month for years. FHA borrowers pay mortgage insurance premiums, frequently for the life of the loan. VA loans never charge monthly mortgage insurance, at any down payment, ever. Over the first decade that single difference can save $20,000–$45,000 versus a comparable low-down conventional or FHA loan, which usually more than offsets the one-time funding fee.
When to put money down on a VA loan
You usually do not need to — but a down payment does two things: it lowers the funding fee tier (5% down cuts a first-use fee from 2.15% to 1.50%) and reduces the financed balance. For subsequent users especially, going from 0% to 5% down slashes the fee from 3.30% to 1.50%, which is often worth more than the down payment itself in fee savings.
Frequently asked questions
Do I have to pay the funding fee in cash? No. Almost all borrowers finance it into the loan. The calculator assumes it is financed, which is why "total financed" is slightly above the base loan.
Who is exempt from the funding fee? Veterans receiving VA disability compensation (10%+ rating), Purple Heart recipients on active duty, and qualifying surviving spouses. Exemption can save thousands — always confirm your status with the VA.
Is there really no down payment requirement? Correct, for loan amounts within the lender's full-entitlement limits. VA does not require a down payment; lenders may impose their own conditions on very large loans.
Does a VA loan have PMI? Never. This is the defining advantage. No monthly mortgage insurance regardless of down payment or equity.
Can I use a VA loan more than once? Yes — the benefit is reusable. Subsequent-use funding fees are higher at low down payments, which the calculator reflects when you select "subsequent use."
What is not included here? HOA dues, closing costs, and the VA appraisal are separate. Use a closing cost calculator for upfront cash. This focuses on the monthly payment plus the funding-fee mechanics.
Are VA rates lower than conventional? Often slightly, because the loan is government-backed and lower risk for lenders. The bigger savings is structural: no PMI.
Methodology
Funding fee uses 2026 VA rate tiers based on down-payment percentage and first vs subsequent use, set to 0% when exemption is selected. The fee is added to the base loan (price minus down) and the principal-and-interest payment is computed on that financed total with the standard amortization formula. Tax and insurance are converted to a monthly equivalent. Estimates only — not a loan offer, VA determination, or financial advice. Confirm entitlement and exemption status with the VA and a VA-approved lender.
Written by the CalcCottage team. We show the real number, not the marketing number.
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