- Principal & Interest$0.00
- Property Tax$0.00
- Home Insurance$0.00
- Monthly PMI$0.00 — No PMI!
The VA funding fee is a one-time charge financed into the loan. It replaces the cost of PMI. Veterans with 10%+ service-connected disability are exempt.
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% – 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
What makes the VA loan payment different
If you're eligible for a VA loan, the math on your monthly payment works differently from a conventional mortgage — and this calculator accounts for it. The two big differences: there's no monthly mortgage insurance (even with zero down), and there's a one-time VA funding fee rolled into the loan instead. Understanding both is the key to reading your real payment.
The funding fee, explained
The VA funding fee is what keeps the loan program running without taxpayer cost. It's a percentage of the loan amount, and it changes based on your down payment and whether this is your first VA loan:
- First-time use, 0% down: 2.15% of the loan
- First-time use, 5%–9% down: 1.50%
- First-time use, 10%+ down: 1.25%
- Subsequent use, 0% down: 3.30%
Most borrowers roll this fee into the loan rather than pay it upfront, which is why your loan balance may look slightly higher than the home price. The calculator above shows this so there are no surprises at closing.
Worth knowing: veterans receiving VA compensation for a service-connected disability are usually exempt from the funding fee entirely. If that's you, set the funding fee to zero — it can save thousands.
Why "no money down" still deserves a second look
The VA loan's zero-down option is genuinely valuable, but putting nothing down means you start with no equity and a larger balance generating interest. If you can comfortably put some money down, you'll lower both the funding fee percentage and your monthly payment. It's not required — just run both scenarios above and see the difference before you decide.
Common questions
Does the VA loan really require no down payment?
Correct — qualified borrowers can finance 100% of the purchase price on a primary residence, with no PMI. It's one of the strongest benefits in all of mortgage lending.
Can I use a VA loan more than once?
Yes. VA loan eligibility can be reused and even restored after you sell and pay off a previous VA loan. The funding fee is higher on subsequent uses with no down payment.
Is there a loan limit on VA loans?
For veterans with full entitlement, there's no cap on how much you can borrow without a down payment — lenders still qualify you by income and credit as usual.
For the complete breakdown, read the full VA Loan Guide.