VA Loan Calculator 2026 — Funding Fee & $0 Down Payment

How the VA funding fee works

The VA funding fee is a one-time charge on VA-backed home loans. It keeps the VA loan program running without taxpayer funding, and for most borrowers it is financed into the loan — you do not pay it out of pocket at closing. The fee is a percentage of the base loan amount (price minus down payment), and it depends on how many times you have used your VA benefit.

Note: this calculator applies the headline $0-down rates (2.15% first use, 3.30% subsequent use), which is the most common VA purchase scenario. If you put 5% or more down, your fee is lower — see the table above.

Who pays $0 funding fee?

You are exempt from the funding fee if any of these apply: you receive VA compensation for a service-connected disability; you would receive it but for receipt of retirement or active-duty pay; you are a Purple Heart recipient on active duty; or you are the surviving spouse of a veteran who died in service or from a service-connected disability. If you think you qualify, confirm with your lender and the VA before closing — the exemption is worth thousands.

Worked example: $350,000 home, $0 down

First use, 6.5% rate, 30-year term, 1.10% property tax, $1,800/year insurance. Funding fee = $350,000 × 2.15% = $7,525. Financed loan = $357,525. Monthly principal & interest = $2,259.80; property tax = $320.83; insurance = $150.00; total PITI = $2,730.63. With the disability exemption, the fee is $0, the loan is $350,000, and the monthly payment drops to $2,683.07 — a saving of $7,525 upfront and $47.56 every month, or about $17,100 over the life of the loan.

Why VA loans have no PMI

VA loans never charge private mortgage insurance, even with $0 down. That is one of the biggest advantages over conventional and FHA loans: on a $350,000 home, avoiding PMI can save $150–$300 per month compared with a low-down-payment conventional loan. The funding fee partly replaces PMI, but unlike PMI it is a one-time charge, not a monthly cost.

VA loan basics

VA loans are available to eligible veterans, active-duty service members, and surviving spouses. There is no official minimum credit score set by the VA, but most lenders require around 620–640. There is no down payment requirement and no maximum loan amount set by the VA itself, though lenders apply their own limits and the VA guaranty affects how much you can borrow with $0 down in high-cost counties.

Educational content only — not financial advice. Calculator results are estimates based on the inputs you enter. Actual loan terms, rates, fees, and approval depend on your lender, credit profile, property, and location. Talk to a licensed loan officer before making a home-buying decision.