VA Loan Calculator

How to Use Our VA Loan Calculator

To estimate your monthly VA mortgage payment, enter:

• Home price
• Down payment (if any)
• Loan term and interest rate
• VA disability status
• First-time or subsequent use
• Estimated property taxes and homeowners insurance

The calculator includes the VA funding fee by default and adjusts it based on your inputs.

What Is a VA Loan?

VA loans are government-backed mortgages with no down payment, no PMI, and low interest rates, designed for:

• Veterans
• Active-duty military
• Certain surviving spouses

They offer flexible credit requirements and are available for primary residences only.

VA Loan Glossary

• Principal: The portion of your payment that pays down your loan balance.
• Interest: The cost of borrowing money, based on your rate.
• VA Funding Fee: A one-time charge replacing traditional mortgage insurance.
• Closing Costs: Fees due at closing, like title insurance and lender charges.
• Escrow: Monthly collection of taxes and insurance.
• Property Taxes & Homeowners Insurance: Included in your monthly estimate.

Types of VA Loans

• VA Purchase Loan: Buy a primary residence with $0 down.
• VA IRRRL (Streamline Refinance): Refinance your VA loan with minimal paperwork.
• VA Cash-Out Refinance: Tap into your home equity or refinance a non-VA loan.

Tip: Use our IRRRL Calculator or Cash-Out Refi Calculator to explore refinancing options.

Pros and Cons of VA Loans

VA loans come with major benefits, but they’re not the perfect fit for everyone. Here’s a quick look at the advantages and drawbacks:

Pros

• No down payment required: Most qualified borrowers can buy a home with $0 down.
• No private mortgage insurance (PMI): Unlike FHA or conventional loans, VA loans don’t require monthly PMI.
• Competitive interest rates: VA loans often have lower interest rates than other loan types.
• Flexible credit requirements: VA guidelines are more forgiving, especially for past credit issues.
• No loan limits with full entitlement: Borrow up to the home’s price without caps, assuming full VA entitlement.
• Funding fee waived for disabled vets: Veterans receiving 10%+ disability compensation don’t pay the VA funding fee.

Cons

• Funding fee can be expensive: Unless exempt, you’ll pay a one-time VA funding fee, which adds to the loan balance.
• Primary residence only: You can’t use a VA loan for vacation or investment properties.
• VA appraisals can be strict: The VA has specific property standards that may limit home choices.
• Not all lenders offer the same terms: Some lenders charge higher rates or fees despite the VA guarantee; shop around.
• Refinancing rules are specific: VA streamline refinances (IRRRLs) come with restrictions, such as benefit thresholds and occupancy requirements.

VA Loan Requirements

To qualify for a VA loan, you’ll need to meet:

• Military eligibility: Length of service or active duty status
• Credit & income standards: No set VA credit score, but lenders may require ~620
• Residual income: Required based on family size and location

2025 VA Loan Limits & Entitlement

There are no loan limits for borrowers with full VA entitlement.
If you’ve used your entitlement before (aka Tier 2 Entitlement), a down payment may be required depending on your remaining benefit.

Learn more about Tier 2 Entitlement and how it affects your purchasing power.

Understanding VA Loan Variables

VA Funding Fee

A one-time fee is added to the loan, unless you’re exempt. It depends on:

• First-time vs. subsequent use
• Down payment amount
• Loan purpose (purchase or refinance)

Tip: If you receive VA disability benefits, the fee is typically waived, saving you thousands.

VA Disability and Exemption

Borrowers with 10%+ VA disability are exempt from the funding fee. This can significantly lower your loan cost.

Subsequent Use

You can use your VA benefit multiple times, but the funding fee increases after your first use unless you make a down payment:

• 5% down = reduced fee
• 10% down = even lower fee

Choosing the Right VA Lender

VA loans are not issued by the VA, they’re offered by private lenders. Shop around to compare:

• Interest rates
• Lender fees
• Customer service

Each lender may offer different rates and costs even on the same loan product.

Refinancing a VA Loan

Already have a VA loan? You may be eligible to refinance and save:

• VA IRRRL (Streamline): Lower your rate without an appraisal.
• VA Cash-Out Refi: Access equity or refinance from a non-VA loan.

Don’t Qualify for VA Benefits?

You may still have options:

• USDA Loans: $0 down for eligible rural areas
• FHA Loans: Only 3.5% down, great for lower credit scores

Explore your options to find the best fit for your situation.

Relevant VA Mortgage Articles

• Guide to VA Loans: What They Are and How to Qualify
  A complete overview of VA loans, including who qualifies, how they work, and why they’re a top choice for military homebuyers.
• VA Loan Requirements
  Learn about the service, income, and credit guidelines you’ll need to meet to be eligible for a VA home loan.
• Thinking of Using a VA Loan? Four Quick Tips for VA Homebuyers
  Get practical tips that can help you make the most of your VA loan benefits and avoid common pitfalls.

Thank You for Your Service

At What’s My Payment, we’re proud to support the men and women who’ve served. We’re here to help you navigate the VA loan process and make the most of your hard-earned benefits.

>> Learn About: VA Construction Loans

FAQs About VA Loans

1. Who qualifies for a VA loan?

VA loans are available to eligible veterans, active-duty service members, certain National Guard and Reserve members, and some surviving spouses. Eligibility is based on service history, duty status, and discharge conditions.

2. Do VA loans require a down payment?

No. One of the biggest benefits of a VA loan is that most eligible borrowers can purchase a home with no down payment required, making homeownership more accessible.

3. Do I have to pay mortgage insurance with a VA loan?

No. Unlike FHA or conventional loans, VA loans do not require monthly private mortgage insurance (PMI). Instead, a one-time VA funding fee typically applies, unless you're exempt.

4. Can I use a VA loan more than once?

Yes. You can use your VA loan benefit multiple times as long as you have remaining entitlement. Even if you’ve used it before, it may be restored under certain conditions.

5. What types of properties can I buy with a VA loan?

VA loans can be used to purchase single-family homes, condos, manufactured homes, and even new construction, as long as the property is your primary residence and meets VA standards.