VA Mortgage Calculator

US Department of Veterans Affairs 38 U.S.C. § 3729 VA Loan Standards

The VA Home Loan is one of the most powerful mortgage programs in the world, backed by the federal government:

• Key Advantages:

• 0% Down Payment: Purchase primary residences with no money down.

• 0 Monthly PMI: No monthly private mortgage insurance or mortgage insurance premiums (MIP), saving 200–400/month compared to FHA/conventional.

• Competitive Interest Rates: Typically 0.25% to 0.50% lower than conventional fixed rates.

• VA Funding Fee Structure (2024–Present):

• First-Time Use (0% Down): 2.15% of loan amount.

• Subsequent Use (0% Down): 3.30% of loan amount.

• Down Payment 5% to < 10%: 1.50%.

• Down Payment 10%+: 1.25%.

• Disability Exemption (0.00%): Veterans receiving VA disability compensation, active duty Purple Heart recipients, and qualifying surviving spouses are 100% exempt from the VA funding fee.

How to Use This Calculator

Enter your Home Purchase Price () (e.g. 400000), Down Payment ( / 0% Down Standard) (e.g. 0), VA Mortgage Interest Rate (%) (e.g. 6.25), Loan Term (Years) — choose from 30 Years Fixed, 20 Years Fixed, 15 Years Fixed, VA Service History / Funding Fee Tier — choose from First-Time Use (0% Down / 2.15% Fee), Subsequent Use (0% Down / 3.30% Fee), Down Payment 5% to <10% (1.50% Fee), Annual Property Taxes () (e.g. 4200), Annual Homeowners Insurance () (e.g. 1400), and VA Home Loan Benchmark — choose from Custom VA Loan, 400k Home / First-Time 0% Down @ 6.25% 30-Yr, 500k Home / Subsequent 0% Down @ 6.35% 30-Yr. Results update instantly as you type — adjust any value to compare scenarios.

The Formula

Conversion factors (to SI base unit or reference unit):

price: 400000.0

term: 30.0

tax: 4200.0

ins: 1400.0

down: 17500.0

first_time_0down: 0.0215

subsequent_0down: 0.0330

down_5_to_10: 0.0150

down_10_plus: 0.0125

minimumFractionDigits: 2

maximumFractionDigits: 2

Worked Example

A disabled veteran buying a 600,000 home with 0% down is 100% exempt from the VA funding fee, saving 19,800 upfront and paying 3,656/month (P&I) with zero mortgage insurance.

Understanding Your Result

Lenders use two DTI ratios: front-end (housing costs ÷ gross income) must be below 28% for conventional loans; back-end (all debts ÷ gross income) must be below 43%. Down payment below 20% triggers PMI (0.5–1.5% of loan balance annually). 20% down is the break-even point where PMI savings offset the reduced loan balance benefit. Every 1% rise in mortgage rate reduces buying power by approximately 10% for the same monthly payment.