VA Mortgage Calculator

The VA funding fee is a one-time charge that funds the VA loan program:

First-time use (Regular Military):

• 0% down: 2.15% of loan amount
• 5-9.99% down: 1.50%
• 10%+ down: 1.25%

Subsequent use (Regular Military):

• 0% down: 3.30% of loan amount
• 5-9.99% down: 1.50%
• 10%+ down: 1.25%

Reserves / National Guard:

• First use, 0% down: 2.15%
• Subsequent use, 0% down: 3.30%
• Same reduced rates with 5%+ down

Example on a $400,000 home (0% down, first use):

• Funding fee: $400,000 x 2.15% = $8,600
• Rolled into loan: New balance = $408,600
• Adds about $53/month to your payment

Who is exempt (pays $0):

• Veterans with 10%+ service-connected disability
• Purple Heart recipients serving on active duty
• Surviving spouses of veterans who died in service or from service-connected disability

If you're VA-eligible, VA almost always wins. Here's why:

$400K home comparison:

VA Loan (0% down, 6.25%):

• Down payment: $0
• Monthly P&I: $2,462
• Monthly PMI/MIP: $0
• Upfront costs: ~$8,600 funding fee (in loan)
• Total monthly (PITI): $3,012

FHA (3.5% down, 6.5%):

• Down payment: $14,000
• Monthly P&I: $2,439
• Monthly MIP: $177
• Upfront MIP: $6,756 (in loan)
• Total monthly (PITI+MIP): $3,166

Conventional (20% down, 6.75%):

• Down payment: $80,000
• Monthly P&I: $2,076
• Monthly PMI: $0
• Total monthly (PITI): $2,626

The verdict:

• VA wins on cash needed: $0 vs $14K (FHA) vs $80K (conventional)
• VA wins on monthly payment vs FHA: $154/month less (no MIP)
• Conventional wins on monthly only if you have $80K to put down
• VA is the clear winner for most veterans

Yes! Your VA loan benefit is reusable:

How entitlement restoration works:

• Sell your VA-financed home and pay off the loan = Full entitlement restored
• Refinance from VA to conventional = Full entitlement restored
• Pay off the VA loan (even if you keep the home) = Entitlement available for one-time restoration

Having two VA loans simultaneously:

• Possible with remaining (second-tier) entitlement
• Must qualify for both mortgage payments
• Common scenario: PCS move, rent old home, buy new one with VA
• May need a down payment on the second if remaining entitlement doesn't cover 25% of loan

Subsequent use funding fee:

• Second use with 0% down: 3.30% (vs 2.15% first time)
• Second use with 5%+ down: 1.50% (same as first time)
• Still exempt if you have a disability rating

No limit on number of times:

• You can use VA loans 3, 5, 10+ times over your lifetime
• Each time you pay off and restore, the benefit refreshes
• It's one of the most valuable lifetime benefits of military service

VA loan eligibility is based on service history:

Active duty:

• Currently serving: 90 continuous days of service
• Wartime service: 90 days of active duty
• Peacetime service: 181 days of active duty

Veterans (separated from service):

• Wartime service: 90 days + honorable discharge
• Peacetime service: 181 days + honorable discharge
• If discharged for service-connected disability: Shorter service OK

National Guard / Reserves:

• 6 years of service in Guard/Reserves, OR
• 90 days of active duty under Title 10

Surviving spouses:

• Un-remarried spouse of veteran who died in service
• Un-remarried spouse of veteran who died from service-connected disability
• Spouse of service member missing in action
• Spouse who remarried after age 57 (after Dec 16, 2003)

How to verify eligibility:

• Request a Certificate of Eligibility (COE) from the VA
• Your lender can request it electronically (fastest method)
• Apply online at VA.gov with your eBenefits account
• Submit VA Form 26-1880 by mail

$0 down is the headline benefit, but there are reasons to consider a down payment:

Benefits of $0 down:

• Keep cash for emergencies, moving costs, furniture
• Invest the money elsewhere (potentially higher returns)
• Get into a home immediately without years of saving
• The whole point of the VA benefit

Benefits of putting money down:

1. Lower funding fee:

• $400K home, first use:
• 0% down: $8,600 fee (2.15%)
• 5% down ($20K): $5,700 fee (1.50%) — Save $2,900
• 10% down ($40K): $4,500 fee (1.25%) — Save $4,100

2. Lower monthly payment:

• 0% down: $2,515/month P&I (on $408,600 total loan)
• 10% down: $2,222/month P&I (on $364,500 total loan)
• Save $293/month = $3,516/year

3. Instant equity (protection against price drops):

• 0% down = underwater immediately if prices dip
• 10% down = 10% buffer before you owe more than it's worth

The smart approach:

• If you have a disability rating (no funding fee): $0 down is a no-brainer
• If you have 5-10% saved: Consider putting it down to reduce the funding fee
• If cash is tight: Use the $0 down benefit — that's what it's for
• Never stretch to 20% down — you'd lose the main VA advantage for no real gain

VA loans have specific rules about closing costs that protect veterans:

Costs the veteran CAN pay:

• VA funding fee (if not exempt)
• Appraisal fee: $400-700
• Credit report: $30-50
• Title insurance: $1,000-3,000
• Recording fees: $100-300
• Origination fee: Up to 1% of loan amount
• Discount points: Negotiable
• Prepaid taxes and insurance

Costs the veteran CANNOT be charged:

• Attorney fees charged by the lender
• Broker commissions
• Termite inspection (in most states)
• Real estate agent commissions
• Prepayment penalties (VA loans never have them)

Estimated total closing costs on $400K home:

• VA funding fee: $8,600 (rolled into loan)
• Other closing costs: $4,000-8,000
• Cash needed: $4,000-8,000 (far less than conventional)

Ways to reduce closing costs:

• Seller concessions: Seller can pay up to 4% of price toward your costs
• Lender credits: Accept slightly higher rate in exchange for $0 closing costs
• VA-specific grants: Some states and nonprofits offer closing cost help for veterans