Quick answer: VA loans, for eligible veterans and service members, require $0 down and charge no monthly mortgage insurance — two big advantages over every other loan type. The main cost is a one-time VA funding fee (2.15% for most first-time uses, usually financed). The calculator below is set to Loan type: VA and handles the funding fee for you.
The VA home loan, guaranteed by the Department of Veterans Affairs, is the most affordable mortgage available to those who qualify. No down payment, no monthly mortgage insurance, and competitive rates make the monthly payment meaningfully lower than an equivalent FHA or conventional loan.
The one cost to plan for is the funding fee. The calculator below finances it into your loan and applies no monthly mortgage insurance, so you see the true VA payment.
This calculator is preset to Loan type: VA with $0 down. It finances the 2.15% funding fee into the loan and applies no monthly mortgage insurance.
Mortgage payment calculator
P&I, tax, insurance, PMI & HOA — by loan type, all in one place
| Year | Principal | Interest | Balance |
|---|
How VA loans work
VA loans are issued by regular lenders and guaranteed by the VA, which removes much of the lender's risk and unlocks terms no other loan offers:
- $0 down payment with full entitlement — you can finance 100% of the purchase price.
- No monthly mortgage insurance — unlike FHA MIP or conventional PMI, saving $100–$300+ a month.
- Competitive rates that are often lower than conventional, and flexible credit requirements.
- No loan limit with full entitlement, though lenders set their own maximums.
The VA funding fee
In place of mortgage insurance, the VA charges a one-time funding fee that keeps the program self-sustaining. It varies with your down payment and whether it's your first VA loan:
| 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% |
The funding fee can be waived entirely for veterans receiving VA disability compensation, certain surviving spouses, and Purple Heart recipients. If that's you, your VA payment is even lower than the calculator shows — set the loan up with no financed fee.
VA vs. FHA vs. conventional
For eligible borrowers, VA is almost always the cheapest option because of the zero down payment and the absence of monthly mortgage insurance. An FHA loan requires 3.5% down plus MIP; a conventional loan under 20% down requires PMI. The VA funding fee is a one-time cost, not a recurring monthly one, so over the life of the loan VA typically wins by a wide margin.
Who qualifies for a VA loan?
Eligibility generally includes veterans, active-duty service members, National Guard and Reserve members who meet service requirements, and many surviving spouses. You'll need a Certificate of Eligibility (COE) from the VA, which your lender can usually pull for you. Check your full budget with our affordability guide before you shop.
VA loan eligibility and your Certificate of Eligibility
VA loan eligibility is based on service. In general, you may qualify if you're a veteran who met minimum active-duty service requirements, an active-duty service member, a National Guard or Reserve member with sufficient service, or in many cases the surviving spouse of a service member. The document that proves your benefit is the Certificate of Eligibility (COE), which confirms you have VA loan "entitlement." Most lenders can pull your COE electronically in minutes.
Entitlement can also be restored and reused — having used a VA loan before doesn't necessarily prevent another one, though the funding fee is higher on subsequent uses unless you're exempt. Veterans receiving service-connected disability compensation are exempt from the funding fee entirely.
What VA loans can and can't be used for
VA loans are for primary residences only — you must intend to live in the home, so they can't be used for pure investment properties or vacation homes (though multi-unit properties can qualify if you occupy one unit). Eligible property types include single-family homes, many condos on the VA-approved list, and certain manufactured homes. Like FHA, the VA requires an appraisal that checks both value and Minimum Property Requirements for safety and livability. Because there's no down payment and no monthly mortgage insurance, the VA loan remains the lowest-cost path to ownership for those who've earned it — model your exact payment in the calculator above.
Frequently asked questions
- VA — Home loans — official VA home loan program, eligibility, and Certificate of Eligibility information.
- VA — Funding fee and closing costs — official VA funding fee rates and exemption rules.
- CFPB — What is a VA loan? — federal explainer on VA loan benefits and costs.
- VA Benefits — Home loans — VA resource hub for entitlement and eligibility details.
Last reviewed: June 1, 2026. See our data sources and editorial methodology for how we research every article.