VA Loan Calculator
Estimate your monthly payment on a VA-backed home loan, including the VA funding fee — the one-time cost that replaces private mortgage insurance on VA loans.
How the VA Funding Fee Works
VA loans famously allow $0 down and skip private mortgage insurance entirely — but they aren’t free. Instead of monthly PMI, the VA charges a one-time funding fee, calculated as a percentage of your loan amount. That fee funds the VA loan program for future borrowers, and most people finance it into the loan rather than paying it in cash at closing.
The percentage depends on two things: whether this is your first time using your VA loan benefit, and how much you put down. First-time buyers with no down payment pay 2.15%; that drops to 1.50% with 5% or more down, and 1.25% with 10% or more down. Borrowers using their VA benefit again (subsequent use) pay a steeper 3.30% with no down payment, though the rate matches first-time use once a down payment of 5% or more is made.
One important exception: veterans receiving VA disability compensation are fully exempt from the funding fee, regardless of down payment or prior use. If that applies to you, this calculator removes the fee from the estimate entirely.
Frequently Asked Questions
Can I avoid the VA funding fee?
Yes, if you receive VA disability compensation, are a Purple Heart recipient on active duty, or are an eligible surviving spouse receiving Dependency and Indemnity Compensation (DIC) — these groups are fully exempt.
Should I finance the funding fee or pay it upfront?
Financing it keeps your closing costs lower but adds to your loan balance and total interest paid over time. Paying it upfront costs more cash at closing but reduces what you owe and pay interest on going forward.
Do VA loans require mortgage insurance?
No — VA loans never require monthly private mortgage insurance (PMI), regardless of down payment. The funding fee is what replaces it, which is one of the biggest cost advantages of a VA loan over a conventional one.
What counts as “subsequent use”?
Any VA loan after your first counts as subsequent use — except if your only prior VA loan was used solely to purchase a manufactured home, in which case you’d still qualify for first-time-use rates.