VA Mortgage Calculator — Monthly Payment with Funding Fee, No PMI 2026

You earned this benefit through military service. Now you’re trying to figure out what it actually costs to use it — and whether a VA loan is actually better than a conventional loan for your specific situation. This calculator shows your complete monthly payment including property tax and insurance, calculates your exact VA funding fee based on your service type and usage history, checks your 2026 loan limit eligibility, and compares your VA loan cost side-by-side against a conventional loan with the same home price.

A VA mortgage calculator estimates your monthly payment on a VA-backed home loan, including the VA funding fee, property tax, homeowners insurance, and HOA — without private mortgage insurance, which VA loans eliminate entirely.

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What Is a VA Loan and Who Qualifies?

A VA home loan is a mortgage benefit for eligible veterans, active-duty service members, members of the National Guard and Reserves, and certain surviving spouses. The U.S. Department of Veterans Affairs guarantees a portion of the loan — reducing lender risk — which allows VA-approved lenders to offer:

• Zero down payment required on purchases up to the 2026 conforming loan limit
• No private mortgage insurance (PMI) — ever
• Competitive rates typically 0.25–0.5% below conventional loans
• No prepayment penalty
• Assumable loans — future buyers can take over your VA loan

Basic eligibility requirements:

• 90 consecutive days active duty during wartime, or
• 181 days active duty during peacetime, or
• 6 years in the National Guard or Reserves, or
• Surviving spouse of a veteran who died in service or from a service-connected disability

Exact eligibility is confirmed through your Certificate of Eligibility (COE), which your lender can typically obtain for you through the VA’s automated system.

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How to Use This VA Mortgage Calculator

Service Type — Why It Changes Your Funding Fee

Select your service category: Veteran, Active Duty, Guard/Reserve, or Surviving Spouse. This selection matters because the VA funding fee — a one-time charge that replaces PMI — varies by service category and loan usage history.

Guard and Reserve members pay a slightly higher funding fee than regular military on their first use: 2.15% vs 2.15% for regular military — actually the same since 2020 legislation equalised the rates. Both groups now pay identical fees, but the calculator confirms your exact category for documentation purposes.

Surviving spouses who qualify for VA loan benefits are generally exempt from the funding fee entirely if they receive Dependency and Indemnity Compensation (DIC). Toggle the Disability/Exemption Status if this applies.

VA Loan Usage — First Use vs Subsequent Use

First use: 2.15% funding fee with no down payment (standard purchase, no disability)

Subsequent use: 3.30% funding fee with no down payment

If you’ve used a VA home loan before — whether for a purchase or refinance — you’re on subsequent use. The higher fee applies even if your previous VA loan has been paid off. However, if you’ve restored your full entitlement through a previous property sale and VA entitlement restoration, you may still qualify for full benefits.

Down payment reduces the fee — even on a VA loan:

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%

On a $400,000 purchase, putting down 5% reduces your funding fee from $8,600 to $6,000 — a $2,600 reduction. Whether this pencils out depends on your cash position and opportunity cost of the down payment.

Disability / Exemption Status Toggle

This is the most financially important field on the calculator, and roughly 1 in 3 veterans qualifies. Toggle this ON if any of the following apply:

You are exempt from the VA funding fee if:

• You receive VA compensation for a service-connected disability (any rating of 10%+)
• You are eligible for VA disability compensation but receive retirement or active-duty pay instead
• You are the surviving spouse receiving Dependency and Indemnity Compensation (DIC)
• You received the Purple Heart and are still on active duty

On a $400,000 purchase, the funding fee exemption saves $8,600 in financing costs — plus the interest on that amount if you would have rolled it into the loan. Over 30 years at 6.25%, that $8,600 costs approximately $11,400 in total repayment. Total exemption value: approximately $20,000.

Pending disability claim: If you have a disability claim submitted but not yet decided at the time of closing, you will typically be charged the funding fee. However, if your claim is later approved with an effective date prior to your closing, you can request a refund. The VA Office of Inspector General identified over 250 veterans entitled to refunds in the period 2021–2024 who hadn’t received them. If this applies to you, contact your loan servicer and request the refund process.

NEW for 2026: The VA funding fee is now tax-deductible. Veterans who itemize their tax deductions can deduct the funding fee paid on loans closing in or after 2026. Consult your tax advisor — this benefit only applies if you itemize rather than taking the standard deduction.

Home Price and Down Payment

Enter your target home purchase price. The down payment defaults to 0% — the standard VA purchase — but you can enter a down payment if applicable. The calculator adjusts the funding fee tier accordingly and shows how a 5% or 10% down payment affects your total costs.

Interest Rate and Loan Term

VA loans typically carry rates 0.25–0.5% below equivalent conventional loans. This rate advantage compounds significantly over a 30-year term. At $400,000 with a 0.375% rate difference:

Conventional at 6.625%:  $2,562/month P&I  Total interest: $521,986
VA at 6.250%:            $2,463/month P&I  Total interest: $487,000

Monthly savings:          $99/month
30-year interest savings: $34,986

For the loan term, 30 years is standard. The calculator also models 15-year loans — which carry even lower rates and dramatically reduce total interest at the cost of a higher monthly payment.

Funding Fee Payment — Roll Into Loan or Pay at Closing

Roll into loan (most common): The funding fee is added to your loan balance. Your loan amount becomes home price + funding fee. On a $400,000 purchase with a 2.15% fee: loan amount = $408,600. No cash required at closing for the fee.

Pay at closing: The fee is paid upfront in cash at closing. Your loan remains at $400,000. This eliminates the interest you’d pay on the financed fee amount — typically $2,000–$4,000 over a 30-year term at current rates.

Most veterans roll the fee into the loan because the VA’s zero-down benefit is specifically designed to preserve cash. If you have cash available and want to minimise total cost, paying at closing saves money long-term. The calculator shows both scenarios.

Monthly Costs — Property Tax, Insurance, HOA

Enter your annual property tax rate (your state’s average loads automatically — override with your specific county rate). For property tax by state and county, use the Property Tax Calculator.

Enter annual homeowners insurance cost. The PMI/Mortgage Insurance field shows $0 — None Required — this is one of VA loan’s most significant monthly benefits. A conventional buyer on the same home with 3% down pays $150–$300/month in PMI for years. That cost never appears on a VA loan.

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Understanding Your Results

Total Monthly Payment

Your complete housing cost: principal and interest, property tax (monthly escrow), homeowners insurance (monthly escrow), HOA if applicable, and zero PMI. This is the number to compare against your budget and against competing conventional loan offers.

VA Funding Fee Breakdown

The calculator shows your exact funding fee in dollars, as a percentage, and how it affects your loan amount if rolled in. At 2.15% on a $400,000 purchase:

Funding fee:           $8,600 (2.15%)
Loan with fee:         $408,600
Monthly P&I impact:    +$55/month (rough estimate at 6.25%, 30yr)

VA vs Conventional — Your Real Savings

This is the comparison most VA loan calculators skip entirely. The tool shows the same home purchase side-by-side under two scenarios:

VA loan (you): Zero down payment, funding fee rolled in, no PMI

Conventional with 3% down: 3% down payment, PMI at approximately $150–$300/month until 20% equity

5-year advantage breakdown on $400,000 at 6.25%:

Monthly savings (no PMI):      ~$194/month
5-year PMI savings:            ~$11,695
Down payment kept in bank:     $12,000
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Total 5-year advantage:        ~$23,695

The $12,000 down payment kept in the bank is real money — available for emergencies, investments, or other priorities. The PMI savings are cash you don’t send to an insurer. Together, the 5-year advantage of $23,695 typically exceeds the funding fee cost ($8,600) within 2–3 years.

Loan Amount and Total Interest

Shows your actual loan balance including the financed funding fee, and the total interest paid over the full loan term. Use the total interest figure to compare: VA loan total interest vs. conventional with down payment vs. conventional with PMI. In most scenarios across the first 7–10 years of homeownership, the VA loan wins on total cost.

2026 Loan Limit Check

The calculator shows whether your purchase is within the 2026 VA conforming loan limit. For most counties: $806,500 standard. High-cost areas: up to $1,249,125.

Within limit: Full VA entitlement applies — zero down payment, full VA guarantee.

Above limit (jumbo VA loan): Possible, but requires a down payment equal to 25% of the amount exceeding the limit. Example: $900,000 purchase in a standard county (limit $806,500). Excess: $93,500. Required down payment: $93,500 × 25% = $23,375.

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VA Loan Funding Fee — Complete 2026 Rate Tables

Purchase and Construction Loans

Service Type	Down Payment	First Use	Subsequent Use
All categories	0%	2.15%	3.30%
All categories	5%–9.99%	1.50%	1.50%
All categories	10%+	1.25%	1.25%

Refinance Loans

Loan Type	Fee
IRRRL (streamline refinance)	0.50%
Cash-out refinance (first use)	2.15%
Cash-out refinance (subsequent)	3.30%

Exempt from All Funding Fees

• Veterans receiving VA disability compensation (any rating 10%+)
• Veterans eligible for disability compensation but receiving retirement or active duty pay
• Surviving spouses receiving DIC
• Active duty Purple Heart recipients (with evidence before closing)
• Veterans with a proposed or memorandum disability rating before loan closing

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VA Loan vs Conventional — Which Wins for Your Situation?

When VA Loan Clearly Wins

Limited cash for down payment: The zero-down VA loan vs. 3–20% down conventional is straightforward when cash is limited. The funding fee is lower than 3 years of PMI in most cases, and you keep your down payment liquid.

Strong credit, longer hold period: VA loans with good credit scores get competitive rates without PMI. Over a 10+ year hold period, the total cost advantage over conventional is substantial — often $50,000–$100,000 in combined PMI elimination and rate advantage.

Disability exemption: If you’re exempt from the funding fee, the VA loan wins in almost every scenario. Zero down, no PMI, no funding fee, competitive rate. The conventional loan cannot compete.

When Conventional May Be Considered

Significant down payment available (20%+): With 20% down, conventional loans eliminate PMI and have no funding fee. The comparison becomes rate-dependent. At current spreads (VA typically 0.25–0.5% lower), VA still often wins on rate, but the gap narrows.

Subsequent use with no down payment: The 3.30% subsequent use funding fee ($13,200 on a $400,000 purchase) is substantial. If you have 5% to put down, your fee drops to 1.50% — significantly improving the VA loan’s economics. Run both scenarios in the calculator.

Investment property or second home: VA loans require the property to be your primary residence. They cannot be used for investment properties or vacation homes. For these, conventional or portfolio loans are the only option.

The Pre-Approval Process — What Lenders Check

The “va mortgage pre-approval calculator” searches reflect a real user need: understanding whether you’ll qualify before applying. Lenders evaluate VA loan applicants on:

Credit score: No official VA minimum, but most lenders set overlays at 580–620. Best rates require 720+.

DTI (Debt-to-Income): The VA prefers back-end DTI under 41%, though lenders can approve higher with compensating factors. Disability income, when grossed up for its tax-free status, counts favourably here.

Residual income: Unique to VA loans — the VA requires you to have a minimum amount of income left over after all monthly obligations. This amount varies by region and family size. This is one reason VA loans have lower default rates than any other loan type.

Employment: 2 years of employment history generally required. VA disability compensation qualifies as stable income — it can be the sole qualifying income for some veterans.

Certificate of Eligibility (COE): Confirms your entitlement. Most lenders pull this electronically in minutes. If yours has issues, your VA regional loan centre can help resolve them.

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VA Loan Closing Costs — What Non-Allowable Fees Mean

VA loans have a unique feature called “non-allowable fees” — costs the VA prohibits lenders from charging veteran borrowers. These include attorney fees (in some states), real estate brokerage fees, prepayment penalties, and certain processing charges.

However, VA loans still have closing costs. Typical VA buyer closing costs:

Cost	Typical Range
VA funding fee (if applicable)	0%–3.30% of loan
Origination fee (1% max)	$0–$4,000
Appraisal (VA-ordered)	$500–$800
Title insurance (lender policy)	$600–$1,500
Recording fees	$50–$200
Prepaid interest	Varies by closing date
Property tax escrow (2 months)	Varies
Homeowners insurance (14 months)	Varies

VA buyers can negotiate seller concessions up to 4% of the purchase price to cover closing costs — more than conventional loans allow. In a buyer’s market, requesting seller concessions to cover closing costs is common and often successful.

For a detailed estimate of your total cash needed at closing, use the Closing Costs Calculator — it has a VA loan mode built in.

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Surviving Spouse VA Loan Benefits — Often Overlooked

Surviving spouses of veterans who died in service or from a service-connected disability have access to VA home loan benefits that are frequently underutilised. Eligible surviving spouses receive:

• All standard VA loan benefits: zero down payment, no PMI, competitive rates
• Full exemption from the VA funding fee if receiving DIC
• The ability to use the benefit regardless of whether the veteran had previously used VA loan entitlement

Eligibility requires that the survivor not have remarried (with some exceptions), and the veteran’s death must have been in service or service-connected. Contact a VA-approved lender or the VA directly to verify your COE as a surviving spouse.

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Frequently Asked Questions

What is the VA funding fee in 2026?

For first-time VA loan users with no down payment, the fee is 2.15% of the loan amount. Subsequent users pay 3.30%. With 5%+ down, the fee drops to 1.50% for both groups. Veterans with a service-connected disability rating of 10%+ are fully exempt. On a $400,000 purchase with 0% down and first use, the fee is $8,600 — typically rolled into the loan rather than paid at closing.

Can I avoid the VA funding fee?

Yes, if you have a service-connected disability rating, receive VA disability compensation, have a pending disability rating, received the Purple Heart on active duty, or are a surviving spouse receiving DIC. Approximately 1 in 3 VA borrowers qualifies for the exemption. Toggle the Disability/Exemption Status in the calculator to see your payment with zero funding fee applied.

Is the VA funding fee tax deductible in 2026?

Yes — starting tax year 2026, the VA funding fee is tax deductible for veterans who itemize their deductions. This benefit applies to loans closing in 2026 and beyond. Veterans taking the standard deduction will not see a tax benefit, but those who itemize can deduct the funding fee on their federal return. Consult a tax advisor for your specific situation.

Does a VA loan require PMI?

No. VA loans never require private mortgage insurance, regardless of how little you put down. This is one of VA loan’s most significant monthly benefits. A conventional buyer with 3% down on a $400,000 home pays $150–$300/month in PMI for years until they reach 20% equity. That cost is permanently eliminated on a VA loan.

What is the 2026 VA loan limit?

The standard conforming loan limit for 2026 is $806,500 for most counties. High-cost areas go up to $1,249,125. For purchases at or below this limit, veterans with full entitlement can use the VA loan with zero down payment. For purchases above the limit (jumbo VA loans), a down payment equal to 25% of the excess amount is required. The calculator shows whether your purchase falls within the limit in real time.

How does my VA loan compare to a conventional loan?

The calculator shows this directly in the VA vs Conventional comparison section. For a $400,000 purchase, the typical 5-year advantage of a VA loan over a 3%-down conventional loan is approximately $20,000–$25,000 — combining PMI elimination (~$11,700 over 5 years), the down payment retained (~$12,000), and the rate advantage. This advantage exceeds the funding fee cost in most scenarios within 2–3 years of homeownership.

Can I get a VA loan if my only income is VA disability compensation?

Yes. VA disability compensation is treated as stable qualifying income by lenders. Because it is tax-free, many lenders “gross up” disability income by 25% when calculating your debt-to-income ratio — meaning $2,000/month in disability compensation may count as $2,500 in qualifying income. This benefit, combined with the funding fee exemption that applies to most disabled veterans, makes VA loans highly accessible for veterans living on disability compensation.

What happens if I’ve already used my VA loan benefit?

You can use your VA loan benefit multiple times. If you’ve sold your previous VA-financed home and paid off the loan, you can apply to have your entitlement restored and use the benefit again at first-use fee rates (2.15%). If you still own the previous home, you’ll be on subsequent use (3.30%) unless you have sufficient remaining entitlement. Your lender can calculate your available entitlement from your COE.

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Related Calculators

Your VA loan payment is one component of your total housing cost. For the complete picture including property tax by your specific county, see the Property Tax Calculator. For all the cash you’ll need at closing — origination fees, title costs, prepaid interest, escrow setup, and the funding fee — the Closing Costs Calculator has a dedicated VA loan mode showing non-allowable fees and typical seller concession scenarios.

If you want to understand how much home you can afford on your income — factoring in your DTI and residual income requirements — the Affordability Calculator models your maximum purchase price. For veterans considering refinancing an existing VA loan, the Mortgage Refinance Calculator calculates your break-even point on the 0.50% IRRRL funding fee versus monthly savings. And for a full month-by-month breakdown of how your VA loan pays down over time — showing when your equity reaches 20%, your payoff date, and the effect of extra payments — see the Mortgage Amortization Calculator.

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