🇺🇸VA Loan Calculator
Calculate your VA loan with 0% down and no PMI. Exclusive benefits for veterans, active military, and eligible spouses.
Why Use This Calculator?
Zero Down Payment Home Purchase
$350,000 home with VA loan: $0 down payment vs conventional 20% down ($70,000 cash needed). Keep $70k for emergencies, renovations, or investments. First-time buyer or cash-strapped veteran can buy immediately without years of saving. Monthly payment $350k @ 6.5% = $2,212 P&I. No PMI = saves $250/month ($90,000 over 30 years) vs conventional 3.5% down.
No Private Mortgage Insurance Required
$350k home, 0% down conventional = $350k loan with PMI $292/month ($105,120 over 30 years). VA loan $350k = $0 PMI ever. One-time funding fee 2.3% ($8,050) financed = payment $51/month. Total VA cost $18,360 vs conventional PMI $105,120 = save $86,760 lifetime. VA eliminates biggest cost of low down payment loans.
Competitive Interest Rates with Guarantee
VA loan 6.25% vs conventional 6.5% (0.25% lower due to government guarantee). $350k loan: VA @ 6.25% = $2,155/month, conventional @ 6.5% = $2,212 ($57/month difference). Over 30 years: save $20,520 in interest. VA loans often 0.125-0.5% below conventional rates = significant savings. Plus no PMI adds to monthly savings.
Flexible Credit and Income Requirements
Conventional requires 620-640 score minimum, strict 43% DTI. VA allows 580-600 score, up to 50-55% DTI with residual income test. Veteran with 590 score + $6k income = denied conventional, approved VA. Active duty with frequent moves = employment gaps forgiven by VA (not conventional). VA focuses on ability to pay (residual income), not perfect credit history.
No Prepayment Penalties or Refinance Restrictions
$350k VA loan, want to pay off early or refinance to lower rate = $0 penalties ever. Conventional loans sometimes charge 6-month interest penalty ($11,375 on $350k @ 6.5%). VA IRRRL (streamline refinance) when rates drop = minimal paperwork, no appraisal, lower costs ($2,000 vs $6,000 conventional refi). Free to pay extra principal anytime.
Assumable Loans in Rising Rate Environments
Bought @ 6.25% VA loan. Rates rise to 8.5%. Sell home, buyer assumes your 6.25% loan (no requalification) = huge selling advantage. $350k @ 6.25% = $2,155/month vs 8.5% = $2,689/month. Buyer saves $534/month = willing to pay $30k-50k more for your home. Assumability adds major resale value when rates increase.
Step-by-Step Guide
Verify Your VA Loan Eligibility and Entitlement
Eligible: Active duty 90+ days (wartime) or 181+ days (peacetime), veterans with honorable discharge, 6+ years National Guard/Reserve, surviving spouses. Get Certificate of Eligibility (COE) from VA.gov (instant online) or through lender. Entitlement amount: $726,200 (2024) = can borrow up to $726,200 with $0 down (in most counties). Higher-cost areas have increased limits.
Example:
Example: 4 years active duty, honorable discharge = full entitlement, buy up to $726,200
Calculate VA Funding Fee Based on Service
$350k home, first-time use, 0% down: Funding fee 2.3% = $8,050 (financed into loan = $358,050 total). Prior use: 3.6% = $12,600. With 5% down ($17,500): 1.65% fee = $5,775. With 10% down: 1.4% = $4,900. Disabled veterans (10%+ rating) = $0 funding fee waiver. Fee is one-time, added to loan, pays for VA program.
Example:
Example: $400k home, first-time, 0% down = $9,200 funding fee financed = $409,200 loan
Understand No Down Payment Benefits vs Costs
$350k purchase: $0 down + $8,050 fee financed = $358,050 loan @ 6.25% = $2,203/month P&I. Alternative: 10% down ($35k) + $4,900 fee = $319,900 loan = $1,969/month ($234 less). $35k invested @ 7% for 30 years = $266,600. Keep $35k invested, pay higher $234/month = better wealth. VA's 0% down optionality = powerful.
Example:
Example: 0% down payment frees $35k for emergency fund or investment
Compare VA Loan to Conventional with PMI
$350k home, 5% down: Conventional = $332,500 loan + $243/month PMI + 6.75% rate = $2,400/month total. VA = $327,775 loan (includes $5,775 fee) + $0 PMI + 6.25% rate = $2,018 month. VA saves $382/month = $137,520 over 30 years. Even with funding fee, VA cheaper monthly and lifetime vs low-down conventional.
Example:
Example: 3.5% down FHA = $360/month MIP, VA 0% down = $51/month fee (save $309/month)
Calculate Residual Income Requirement
VA requires residual income (after all debts + housing): Family of 4 in South needs $1,062/month left over. $7,000 gross - $1,890 taxes - $2,203 mortgage - $600 debts - $800 other = $1,507 residual (exceeds $1,062 = approved). Conventional only checks DTI 43%. Residual income ensures ability to afford food, utilities, basics = smarter qualification method.
Example:
Example: $6k gross, $2k housing, $400 debts, $1,500 taxes = $2,100 residual (enough for 3-person household)
Determine Property Eligibility and Appraisal Requirements
VA-approved: Single-family homes, condos (VA-approved complex), 2-4 unit properties (must occupy one unit), manufactured homes (permanent foundation). Must meet Minimum Property Requirements (MPR): safe, sanitary, structurally sound. Failed MPR items: peeling paint, broken windows, roof damage = seller must repair or loan denied. VA stricter than conventional on condition.
Example:
Example: Buying condo, must verify HOA is VA-approved (check SAR list), 50%+ owner-occupied
Calculate Seller Concessions Allowed (Up to 4%)
$350k home: Seller can pay up to $14,000 (4%) toward closing costs (vs 3% conventional). Seller concessions cover: $2,000 appraisal, $1,500 origination, $500 credit report, $400 title, $8,050 funding fee, $1,550 prepaids. Negotiate seller pays all closing costs = $0 out-of-pocket purchase (true $0 to close). In buyer's market, sellers often agree to sweeten deal.
Example:
Example: $400k home, request $16k (4%) seller concessions = covers all closing costs + funding fee
Understand VA Loan Limits and Entitlement Restoration
2024 limit: $726,200 (most counties), high-cost up to $1,089,300. Above limit requires 25% down on excess. Example: $800k home = 25% of ($800k - $726k) = $18,500 down needed. Sell home or pay off VA loan = entitlement restores (can use again). No limit on number of VA loans over lifetime. Can have 2 concurrent VA loans if have remaining entitlement.
Example:
Example: Used $400k entitlement (remaining $326k), buy second home up to $326k with 0% down
Evaluate VA IRRRL Streamline Refinance
Current VA loan 7% ($350k, 28 years left). Rates drop to 6%. VA IRRRL refi: No appraisal, no income verification, no credit pull (lenders vary), $2,000 costs. New loan $348,500 (balance + closing) @ 6% for 30y = $2,088/month vs current $2,387 = save $299/month. Break-even: 7 months. Easiest refinance process available. Must reduce rate or payment to qualify.
Example:
Example: 6.5% → 5.75% IRRRL saves $187/month, $2k costs = 11-month break-even
Calculate Cash-Out Refinance with VA Loan
$350k home, $200k VA loan balance, want $50k cash. VA cash-out refi: New loan $250k (balance + cash) + funding fee 2.3% = $255,750 @ 6.5%. Payment increases from $1,264 to $1,618 ($354 more). Get $50k for renovations, debt consolidation. Max 90% LTV = can only pull equity up to 90% of value ($315k max loan on $350k home). Cash-out has higher fee than purchase/IRRRL.
Example:
Example: $400k value, $220k balance, pull $130k cash = $350k loan ($400k × 90% - $10k fee)
Expert Tips & Strategies
Use 0% Down Strategically, Not as Only Option
$350k home: 0% down = $358k loan with fee. Have $35k saved, choosing between: (A) 0% down, invest $35k @ 7% = $266k in 30 years, or (B) 10% down, save $234/month payment × 30 years = $84,240. Option A wins $181k. But if no emergency fund, putting 5-10% down + keeping cushion = smarter. Use 0% down when you have reserves, not because you have $0.
Get Funding Fee Waiver with Disability Rating
10%+ VA disability rating = $0 funding fee (vs 2.3% = $8,050 on $350k). Filing for disability? Wait for rating before closing = save $8,050. Already have rating? Provide VA award letter to lender. Even Purple Heart = fee waiver. Retroactive waivers not allowed - must have rating at closing. $8,050 saved = worth delaying purchase 2-3 months for rating approval.
Negotiate 4% Seller Concessions Aggressively
$350k offer with $14k (4%) seller concessions request = $364k effective price but seller pays closing costs. In balanced market, request 2-3%. Buyer's market: ask full 4%. New construction often agrees to 3-4% to close deal. Seller concessions eliminate out-of-pocket cash need. Combined with 0% down = truly $0 to close (might get refund check at closing for excess escrow).
Check Condo Approval Status Before Offering
Love a condo, made offer, then learn HOA not VA-approved = deal dies, wasted time and inspection costs. Before touring condos, check VA-approved list (SAR database on HUD.gov). Non-approved complex can apply but takes 3-6 months. Buying condo = verify approval first, or include approval contingency in offer. Single-family homes = no approval needed.
Consider Assumability When Buying in Low-Rate Environment
Buying with 6% VA loan when rates are low feels normal. Fast-forward 5 years: rates jump to 9%. Your assumable 6% loan makes home worth $40k-60k more (buyers save $450/month). List at premium, close faster. Or keep loan, rent property, tenant benefits from low rate. Assumability = hidden benefit that gains value as rates rise. Never refinance away assumability unless critical.
Use Residual Income to Qualify with High DTI
$6k gross income, $2,400 housing, $800 debts = 53% DTI (conventional denied at 43%). But residual income: $6k - $1,620 tax - $2,400 housing - $800 debt = $1,180 left (exceeds $1,025 requirement for 4-person South household) = VA approved. High DTI not automatic denial if residual income sufficient. VA's flexibility helps veterans with high housing costs.
Put Extra Down Payment to Lower Funding Fee
$350k home: 0% down = 2.3% fee = $8,050. Put 5% down ($17,500) = 1.65% fee = $5,775 (save $2,275). Put 10% down ($35k) = 1.4% fee = $4,900 (save $3,150). If you have cash, putting 5-10% down reduces fee significantly. Break-even: $17,500 down saves $2,275 fee + lowers payment $108/month = attractive if not depleting emergency fund.
Explore Multiple VA-Approved Lenders for Best Rate
Lender A: 6.5% rate, $2,500 origination. Lender B: 6.25% rate, $3,500 origination. Lender C: 6.375%, $2,000 origination. $350k loan over 30 years: 6.25% = $396k total interest vs 6.5% = $419k ($23k difference). Rate shopping can save tens of thousands. VA loans standardized = easy to compare. Get 3-5 quotes, not all lenders offer same rates. Credit unions often best for veterans.
Common Mistakes to Avoid
✓ Better approach: Found perfect $340k fixer-upper, made VA loan offer. Appraisal identified: peeling lead paint, cracked foundation, leaking roof = failed MPR (Minimum Property Requirements). Seller refuses repairs = deal dies. VA loans require move-in ready condition. Buying fixer-upper? Use conventional loan (looser standards), then refi to VA after repairs. Check property condition before offering with VA loan.
✓ Better approach: Bought $700k home with VA loan (used full $700k entitlement). Got new duty station, need second home, but only $26k entitlement remaining (can't buy anything decent). Should have used conventional on first home or put down payment to preserve entitlement. Or sell first home to restore entitlement. Plan ahead if active duty with frequent moves - don't use full entitlement on first purchase.
✓ Better approach: Thought loan was $350k (purchase price, 0% down). Actual loan: $358,050 ($350k + $8,050 funding fee). Upside-down immediately - owe $8k more than value. Selling within 2 years = short sale risk if market dips. Funding fee financing is benefit (no cash needed) but increases LTV to 102.3%. Build equity with extra payments early or wait for appreciation before selling.
✓ Better approach: Pre-qualified by online calculator for $400k. Made offers, kept losing to conventional buyers. Pre-qualification = not verified, sellers don't trust. Got pre-approved (full underwrite, COE, income docs verified) = finally competitive. VA loans have stigma as "slow" so pre-approval critical to prove you're serious. Get COE and full approval before house hunting.
✓ Better approach: Have $70k down (20%) on $350k home. Used VA: $350k @ 6.25% + $8,050 fee = $358k loan. Should have compared: Conventional $280k loan (20% down) @ 6.5% = $1,769/month vs VA $2,203 ($434 more). VA only better with <10% down. With 20% down, conventional wins (no fee, lower loan amount). Don't assume VA always best - compare scenarios.
✓ Better approach: 30% VA disability rating, bought $350k home, paid $8,050 funding fee. Didn't realize disability = fee waiver. Could have saved $8,050 completely. Now stuck paying $51/month for 30 years ($18,360 total) that was unnecessary. Always provide VA disability award letter to lender before closing. Even Purple Heart recipients get waiver. Check eligibility before paying fee.
✓ Better approach: Offered $380k on $360k list price, waived appraisal contingency to win. VA appraisal came in at $360k (VA won't lend above appraised value). Now owe $20k difference in cash (don't have it) or walk away (lose earnest money $10k). VA loans require appraisal contingency or have cash for gap. Never waive appraisal contingency with VA loan unless you have cash reserves to cover potential gap.
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Frequently Asked Questions
Who qualifies for a VA loan?
VA loans are available to active-duty service members, veterans, and eligible surviving spouses. You need a Certificate of Eligibility (COE) from the VA. Service requirements vary: 90 consecutive days of active service during wartime, 181 days during peacetime, or 6 years in the National Guard/Reserves. You must also meet credit and income requirements (typically 620+ credit score), and the home must be your primary residence.
What is the VA funding fee and can I avoid it?
The VA funding fee is a one-time fee (2.15-3.30% of the loan) that funds the VA loan program and can be financed into your loan. First-time users pay 2.15% with 0% down, subsequent use is 3.30%. The fee is reduced to 1.25-1.50% with 10%+ down. Veterans with a service-connected disability rating of 10% or higher are completely exempt from the funding fee, saving thousands of dollars. Surviving spouses receiving DIC are also exempt.
What are the main advantages of VA loans?
VA loans offer incredible benefits: (1) 0% down payment - buy with no money down; (2) No PMI ever - save $100-300/month; (3) Competitive interest rates - typically 0.25-0.5% lower than conventional; (4) More lenient credit requirements; (5) No prepayment penalties; (6) Funding fee can be financed; (7) Disability exemption from funding fee; (8) Up to 100% financing; (9) Seller can pay closing costs. These benefits can save veterans hundreds of thousands over the loan term.
Are there any downsides to VA loans?
VA loans have few disadvantages: (1) Only for primary residence, not investment properties; (2) VA funding fee (though often lower than PMI over time); (3) Property must meet VA standards (can limit choices in competitive markets); (4) Appraisal can be strict; (5) Some sellers prefer conventional buyers (misconception); (6) VA loan entitlement limits (though usually adequate). Despite these minor drawbacks, VA loans are typically the best option for eligible veterans, especially with 0% down and no PMI.
Can I use a VA loan more than once?
Yes! You can use VA loans multiple times. Your entitlement is restored after paying off the previous VA loan and selling the home. You can even have multiple VA loans simultaneously if you have remaining entitlement. First-time use has a 2.15% funding fee (0% down), subsequent use is 3.30% (0% down). You can also restore partial entitlement while keeping one VA loan active. As of 2020, there's no loan limit if you have full entitlement, though lenders may impose their own limits.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.