VA Mortgage Calculator

Three features make VA loans distinctive. First, no required down payment for most eligible borrowers, even on substantial loan amounts. Second, no private mortgage insurance — saving the typical $100–$300/month that low-down-payment conventional or FHA loans incur. Third, competitive rates, often 0.25–0.5 points below comparable conventional rates because the VA guaranty reduces lender risk.

The combined effect: a VA borrower can often buy a home with no money down at a lower monthly cost than a conventional borrower putting 20% down. For eligible buyers, VA is almost always the right starting point — alternatives need to overcome a meaningful structural advantage.

The trade-off for VA's borrower-friendly features is the VA funding fee — a one-time fee paid to the VA at closing (or financed into the loan) that supports the program. The fee depends on three things: whether it's a first-time or subsequent VA use, the down payment amount, and the loan type (purchase, refinance, etc.). For most first-time purchasers with no down payment, the funding fee is currently 2.15% of the loan amount; subsequent uses are 3.3%.

Funding fees are waived for veterans receiving compensation for service-connected disabilities and certain surviving spouses. For those who qualify for the waiver, the VA loan becomes essentially free of fees beyond standard closing costs — a clear, large advantage.

Each eligible veteran has a VA "entitlement" — a guarantee amount the VA backs on each loan. Most veterans can use VA financing more than once: paying off the first VA loan (or selling and having the entitlement restored) frees up entitlement for a new loan. In some cases, you can hold two VA loans simultaneously if there's enough remaining entitlement.

For VA loans above the conforming loan limit (a "VA jumbo"), the borrower may need to make a down payment equal to 25% of the amount above the limit, because the VA guaranty caps. A loan officer experienced with VA loans can model this precisely.

VA loans require the home to be the borrower's primary residence (with a 60-day occupancy expectation post-closing in most cases, though service-related exceptions exist). The property must pass a VA appraisal that includes a Minimum Property Requirements (MPR) check — broadly similar to FHA's standards, focused on safety, soundness, and sanitation.

Investment properties and second homes don't qualify directly, but multi-unit (1–4) properties do, as long as the borrower occupies one of the units. This is one of the most powerful house-hacking strategies available — combining no-down VA financing with rental income from the other units.