What Is a VA Home Loan?
A VA home loan is a mortgage backed by the U.S. Department of Veterans Affairs. It is available to eligible service members, veterans, and certain surviving spouses. VA loans offer significant benefits, including no required down payment, competitive interest rates, and no private mortgage insurance (PMI). Many borrowers also qualify for reduced closing costs and special protections during repayment.
Because VA loans are guaranteed by the government, lenders can offer flexible credit guidelines and favorable terms that make homeownership more accessible for military buyers.
How to Use the VA Loan Calculator
Our VA Loan Calculator helps you estimate your monthly mortgage payment, including principal and interest (P&I), VA funding fee, property taxes, homeowners insurance, HOA dues, and any extra monthly principal you choose to pay.
To get the most accurate results, follow these steps:
1. Select your VA loan type
Choose whether you’re using the calculator for a home purchase, construction, or refinance. This changes how the loan amount and funding fee are calculated.
2. Enter the home price or estimated property value
For purchases, this is the contract price. For refinances, enter your current home’s appraised value.
3. Input your base loan amount
For purchases, this usually matches the home price. For refinances, enter the new loan amount before the VA funding fee is added.
4. Add your loan details
Include:
- Loan term (usually 15 or 30 years)
- Interest rate (APR)
- Down payment amount (if any)
- Annual property taxes
- Annual homeowners insurance
- Monthly HOA dues
- Extra principal (optional)
5. Choose whether you’re exempt from the VA funding fee
Borrowers with qualifying service-connected disabilities may be exempt. If you are, the funding fee will be removed automatically.
6. Indicate whether this is your first-time VA use
The VA funding fee changes depending on whether it’s your first or subsequent use of your VA loan benefit.
7. View your results
The calculator will show:
- Monthly principal and interest payment
- Property taxes, insurance, HOA dues
- Total monthly payment
- VA funding fee and total financed loan amount
- Total interest paid over the life of the loan
- Impact of extra principal payments
- Loan balance chart over time
- Principal vs. interest breakdown
These calculations help you understand what to expect before applying for a VA loan or refinance.
VA Funding Fee Explained
The VA funding fee is a one-time cost that helps keep the VA loan program running. The fee amount depends on:
- Loan type (purchase, construction, cash-out refinance)
- Down payment amount
- First-time vs. subsequent VA loan use
Borrowers with qualifying service-connected disabilities, Purple Heart recipients, and certain surviving spouses are exempt from this fee.
The funding fee can be paid upfront or financed into the loan, and our calculator automatically adjusts the results based on your selections.
Who Qualifies for a VA Home Loan?
To be eligible, you must meet at least one of the following:
- You are an active-duty service member with sufficient service time.
- You are a veteran who meets VA service requirements.
- You are a qualifying member of the National Guard or Reserves.
- You are a surviving spouse eligible for VA benefits.
Additionally:
- Lenders typically look for stable income and a reasonable debt-to-income (DTI) ratio.
- Credit score requirements are flexible and vary by lender, often starting around 580–620.
- You must plan to use the home as your primary residence.
Benefits of a VA Home Loan
VA loans are among the most powerful mortgage options available. Key advantages include:
No down payment required
Most VA borrowers can finance 100% of the home price.
No private mortgage insurance (PMI)
VA loans eliminate PMI, even with zero down payment.
Competitive interest rates
VA-backed mortgages often offer lower rates than conventional loans.
Flexible qualifying guidelines
Easier credit and DTI requirements help more veterans qualify.
Limits on closing costs
Certain fees cannot be charged to VA borrowers.
Streamlined refinancing options
VA IRRRL (Interest Rate Reduction Refinance Loan) allows for simplified, low-cost refinancing.
Explore more mortgage calculators
Run quick scenarios to compare loan options and plan your monthly budget.
Affordability Calculator
Find out how much home you can comfortably afford.
FHA mortgage calculator
Calculate your mortgage payments on an FHA home loan.
Refinance calculator
Check if refinancing your mortgage makes financial sense.
Mortgage Calculator
Break down principal, interest, taxes & insurance.
VA Loan FAQs
Do VA loans really require no down payment?
Yes. Most borrowers qualify for zero down payment unless they choose to put money down to reduce the funding fee or lower their monthly payment.
Does the VA set mortgage interest rates?
No. Rates are set by lenders, but VA loans often come with lower rates because of the VA guarantee.
Can I use a VA loan more than once?
Yes. You can use your VA home loan benefit multiple times, as long as entitlement is available.
Do VA loans have prepayment penalties?
No. You can pay off your VA loan early without any penalties.
Can I use a VA loan to buy a second home or investment property?
VA loans require the property to be your primary residence, but you may buy multi-unit homes (up to four units) if you live in one unit.