VA Loan Calculator with Funding Fee
Use our free Va loan Calculator to plan your loans & mortgages strategy. Get detailed breakdowns, charts, and actionable insights.
VA Loan Calculator with Funding Fee
Calculator
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Formula: M = P[r(1+r)^n]/[(1+r)^n-1] | VA Funding Fee: 2.15% (first use, 0% down) or 3.3% (subsequent)
Worked example — $2,143.85/mo + taxes & insurance
Formula
M = P[r(1+r)^n]/[(1+r)^n-1] | VA Funding Fee: 2.15% (first use, 0% down) or 3.3% (subsequent)
VA loans require no PMI and no down payment. Instead, a VA funding fee is added to the loan (2.15% first use with 0% down, 3.3% subsequent use). Disabled veterans may be exempt from funding fee.
Worked Examples
Example 1: $350K VA loan, first use
Problem:$350,000 home, 0% down, 6%, 30yr, first use
Solution:Funding fee: $7,525 (2.15%). Loan: $357,525. P&I: $2,143.85/mo
Result:$2,143.85/mo + taxes & insurance
Frequently Asked Questions
What is the VA funding fee?
A one-time fee charged by the VA to help fund the program. First-time use with 0% down: 2.15%. Subsequent use: 3.3%. The fee decreases with larger down payments. Disabled veterans and surviving spouses are exempt.
Can I get a VA loan with no down payment?
Yes, VA loans allow 100% financing (no down payment required). This is one of the biggest benefits of VA loans.
Who is eligible for a VA loan?
VA loans are available to active duty service members (90+ days), veterans with honorable discharge, National Guard and Reserve members (6+ years of service or 90+ days active duty), and surviving spouses of service members who died in the line of duty or from service-connected disability. Eligibility is determined by a Certificate of Eligibility (COE), which your lender can usually obtain directly from the VA system online.
Are there limits on how much you can borrow with a VA loan?
Since 2020, VA loans have no official loan limit for eligible borrowers with full entitlement (no existing VA loans or prior foreclosures). Lenders still set maximum loan amounts based on income, credit score, and debt-to-income ratios, typically following conforming loan limits as a guideline. Borrowers with reduced entitlement (e.g., an existing VA loan) may face limits and may need a down payment to cover the gap above their available entitlement.
What is VA entitlement and how is it restored?
Entitlement is the amount the Department of Veterans Affairs will guarantee on your behalf, and it is what allows a lender to make a zero-down loan without mortgage insurance. Entitlement is tied up while a VA loan stays outstanding, which can limit a second simultaneous purchase or require a down payment on it. It is restored when the loan is paid off and the property sold, and a one-time restoration is available when the loan is paid off but the home is kept.
What is the VA appraisal Notice of Value and how does it affect the loan amount?
A VA-assigned appraiser both estimates value and checks the home against Minimum Property Requirements covering safe, sound and sanitary condition, such as working systems, adequate access and no obvious structural hazards. The result is issued as a Notice of Value, and the VA loan amount is based on the lower of that value or the contract price. A VA escape clause lets the buyer withdraw without losing the deposit if the notice comes in below the agreed price.
What is an IRRRL and when does it make sense?
The Interest Rate Reduction Refinance Loan is the VA streamline refinance for an existing VA loan. It normally requires reduced documentation and often no new appraisal, carries a much smaller funding fee than a purchase loan, and must generally lower the interest rate or move an adjustable loan to a fixed one. It makes sense when the rate saving repays the closing costs well within the time you plan to keep the home.
Who is exempt from the VA funding fee?
Exemption generally applies to veterans receiving VA compensation for a service-connected disability, those who would be entitled to such compensation but for receiving retirement or active-duty pay, and surviving spouses of service members who died in service or from a service-connected condition. Exempt status is shown on the Certificate of Eligibility. If you are exempt, the funding fee line in VA Loan Calculator with Funding Fee should be treated as zero and the loan amount reduced accordingly.
Why do VA loans avoid mortgage insurance despite no down payment?
Conventional lenders require private mortgage insurance below 20% equity because they carry the loss risk. With a VA loan the government guaranty covers part of the lender's loss on default, so no separate insurance policy is needed. The funding fee is the borrower's contribution to the fund that backs that guaranty. Removing a monthly insurance premium is often worth more over time than the one-off fee financed into the loan.
How does making a down payment change the funding fee?
The funding fee falls in tiers as the down payment rises, with a reduction once you reach 5% down and a further reduction at 10% or more, and VA Loan Calculator with Funding Fee applies those tiers automatically. A down payment therefore cuts the fee percentage, the base loan amount and the amount of fee financed, so the monthly payment drops on three fronts at once. Repeat users, who face a higher first tier, benefit most from reaching 5%.
References
Reviewed for accuracy by Sahil, Senior Finance & Tax Editor · Editorial policy
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