The VA home loan, guaranteed by the U.S. Department of Veterans Affairs, is one of the strongest mortgage benefits available. Eligible veterans, service members and some surviving spouses can buy with no down payment and no monthly mortgage insurance. Its main cost is the VA funding fee, a one-time charge that depends on the loan type, your down payment and whether you have used the benefit before. This VA loan calculator applies the current fee chart and shows your monthly payment with taxes and insurance.
How to use the VA loan calculator
- Choose the loan type: purchase, cash-out refinance or IRRRL (the VA’s streamline refinance).
- For a purchase, enter the home price and down payment. For a refinance, enter the new loan amount.
- Select first use or subsequent use, and check exempt if you receive VA disability compensation or qualify for another exemption.
- Enter the rate and term, and choose whether to add the funding fee to the loan.
- Add yearly property tax, insurance and any HOA dues.
VA funding fee chart
The fee is a percentage of the loan amount, not the price. These rates apply to loans closing from April 7, 2023, through November 13, 2031, and they are the same for regular military, National Guard and Reserve borrowers:
| Purchase or construction | First use | After first use |
|---|---|---|
| Less than 5% down | 2.15% | 3.3% |
| 5% to 9.99% down | 1.5% | 1.5% |
| 10% or more down | 1.25% | 1.25% |
| Other loans | ||
| Cash-out refinance | 2.15% | 3.3% |
| IRRRL | 0.5% | 0.5% |
| Loan assumption | 0.5% | 0.5% |
| Manufactured home (not on a permanent foundation) | 1% | 1% |
Worked example
A first-time VA borrower buys a $375,000 home with no down payment at 6% for 30 years:
- Funding fee: $375,000 × 2.15% = $8,062.50, financed for a total loan of $383,062.50.
- Principal and interest: $2,296.65.
- With $4,500 a year of property tax ($375/month) and $1,600 of insurance ($133.33), the payment is $2,804.99, with no mortgage insurance.
- On subsequent use the fee would be 3.3% ($12,375). With 5% down it falls to 1.5% of the smaller loan ($5,343.75). An exempt veteran pays nothing, and the payment drops to $2,756.65.
How a down payment changes the fee on this home
| Down payment | Base loan | Fee (first use) |
|---|---|---|
| 0% | $375,000 | $8,062.50 |
| 5% | $356,250 | $5,343.75 |
| 10% | $337,500 | $4,218.75 |
VA loans compared with other options
Compared with an FHA loan with 3.5% down, a VA loan has no annual mortgage insurance and a smaller one-time fee for most first-time users. Over the years that adds up to thousands of dollars. Run the FHA numbers in the FHA loan calculator to see the difference for your price. VA lenders look at residual income, the money left each month after major expenses, along with a debt-to-income guideline of about 41%. They also require a VA appraisal and minimum property requirements.
The rest of your cash to close, including appraisal, title and prepaid escrow, can be estimated with the closing costs calculator. VA rules allow sellers to pay up to 4% of the price in concessions plus normal closing costs. For an IRRRL, compare your current and new payments with the refinance calculator.
Estimates only. Eligibility, entitlement and exemptions are confirmed on your Certificate of Eligibility; the lender's Loan Estimate shows the final funding fee.
Frequently asked questions
What is the VA funding fee in 2026?
For purchase loans closing since April 7, 2023, the fee is 2.15% of the loan with less than 5% down on first use, or 3.3% on later use. It drops to 1.5% with 5% down and 1.25% with 10% or more, whether or not it is your first use. Cash-out refinances are 2.15% or 3.3%, and an IRRRL is 0.5%. These rates are scheduled to remain until November 2031.
Who is exempt from the VA funding fee?
You don't pay it if you receive VA compensation for a service-connected disability, or would receive it if you weren't getting retirement or active-duty pay. Surviving spouses receiving Dependency and Indemnity Compensation are exempt. So are service members with a pre-discharge disability rating issued before closing, and active-duty Purple Heart recipients.
Do VA loans have mortgage insurance?
No. VA-guaranteed loans have no monthly mortgage insurance, even with no down payment. The one-time funding fee helps pay for the program instead, which is a major cost advantage over FHA and low-down-payment conventional loans.
Is there a VA loan limit in 2026?
Borrowers with full entitlement have no VA loan limit. Lenders still decide how much you qualify for based on income, credit and residual income. If part of your entitlement is tied up in another VA loan, the guaranty is figured from your county's conforming limit, which has a $832,750 baseline in 2026, and a down payment may be needed.
Should I finance the funding fee?
Most borrowers do, because it keeps cash free at closing. Financing means paying interest on it. In the default example, an $8,062.50 fee financed at 6% for 30 years costs about $9,339 in interest over the full term.