Finance & LoansFunding fee included

VA Loan Calculator

A VA loan is the only common mortgage with no down payment and no monthly mortgage insurance. The trade-off is a one-time funding fee — which is waived entirely for veterans receiving disability compensation.

The Home & Service

The funding fee depends on your down payment and whether this is a first use.

$
VA allows 0% — more down lowers the fee
%
%
years
MONTHLY PAYMENT (P&I)
$2,201.34 /mo
Down payment$0 (0.0%)
Base loan amount$350,000
Funding fee rate2.15%
Funding fee (rolled in)$7,525
Total loan financed$357,525
Saved vs FHA monthly MIP$160.42 /mo
The 2.15% funding fee ($7,525) is financed into the loan, so you pay interest on it for the whole term; paying it in cash costs less overall if you keep the loan. A VA loan charges no monthly mortgage insurance at all — on an equivalent FHA loan you would pay about $160/mo in MIP for the life of the loan. Property tax and insurance are extra.

No down payment, no monthly mortgage insurance

The VA loan's two defining features are that it requires nothing down for most eligible borrowers and charges no monthly mortgage insurance at all. On an FHA loan the monthly MIP runs for the life of the loan; on a conventional loan with low equity, PMI applies until you reach 20%. A VA borrower pays neither, which usually makes it the cheapest monthly payment available for someone buying with little cash.

The funding fee replaces mortgage insurance

Instead of a recurring premium, the VA charges a single funding fee that is almost always financed into the loan. The rate depends on your down payment and whether you have used a VA loan before: first use with nothing down carries the highest rate, and putting 5% or 10% down reduces it meaningfully. Because the fee is rolled in, you pay interest on it for the life of the loan — which is worth comparing against the cash cost of paying it upfront.

The exemption is significant

Veterans receiving VA disability compensation, and certain surviving spouses, are exempt from the funding fee entirely. That turns a VA loan into a genuinely zero-cost-to-enter mortgage: no down payment, no funding fee, no monthly insurance. If you are exempt, select that option above and the fee drops out of the calculation completely.

What eligibility and entitlement actually mean

VA loans require a Certificate of Eligibility based on service history, and the amount you can borrow without a down payment depends on your remaining entitlement. Since 2020 there is no county loan limit for borrowers with full entitlement, but someone with an existing VA loan still active has reduced entitlement and may need a down payment on a second purchase. The property must also pass a VA appraisal with minimum property requirements, which is stricter than a conventional appraisal on condition issues. None of that changes the payment maths here, but it does change whether the loan is available at the amount you want.

Frequently Asked Questions

Do VA loans really require nothing down?
For most eligible borrowers with full entitlement, yes — there is no down payment requirement and no county loan limit. Reduced entitlement from an existing VA loan can require a down payment.
Is there monthly mortgage insurance on a VA loan?
No. That is the core advantage. VA loans charge a one-time funding fee instead of a recurring monthly premium, unlike FHA MIP or conventional PMI.
Who is exempt from the funding fee?
Veterans receiving VA disability compensation, those eligible to receive it, and certain surviving spouses. The exemption removes the fee entirely.
Should I pay the funding fee in cash or finance it?
Financing it is the default and preserves cash, but you pay interest on it for the whole term. If you have the cash and plan to keep the loan a long time, paying upfront costs less overall.
Where these numbers come from

Sources

Official publications only. Links open the original document in a new tab.