VA Loan Payment Calculator

The VA funding fee is a one-time payment to the Department of Veterans Affairs that helps sustain the VA home loan program for future generations of veterans. It is not paid to the lender and is not an insurance premium — it is a direct payment to VA.

The fee ranges from 1.25% to 3.30% of the loan amount, depending on whether it's your first or subsequent use of the benefit, and how much you put down. First-time use with no down payment: 2.15%. Subsequent use with no down payment: 3.30%. Putting 5%–9.99% down reduces the fee to 1.50% for both groups; 10%+ down reduces it to 1.25% for both.

You can either pay the funding fee at closing or finance it into your loan. Financing adds to your loan balance and increases your total interest paid over time, but lowers your upfront cash requirement. Most borrowers finance it.

These rates are effective through November 14, 2031, per the Blue Water Navy Vietnam Veterans Act of 2019.

Any service-connected disability rating of 10% or higher waives the VA funding fee entirely — on every VA loan you ever use. This is one of the most financially significant disability benefits, because it applies at the time of use rather than as a fixed monthly payment.

On a $400,000 first-use purchase with $0 down, the standard fee is $8,600 (2.15%). With a 10%+ disability rating, you pay $0. On a subsequent-use purchase, that same home would carry a $13,200 fee (3.30%). If you have a disability rating, the waiver saves you real money every time.

Retroactive refunds: If you received your service-connected disability rating after closing on a VA loan and had already paid the funding fee, you may be eligible for a refund. Contact the VA or your lender to request one.

Also exempt: Purple Heart recipients on active duty, and surviving spouses receiving Dependency and Indemnity Compensation (DIC) for a veteran who died in service or from a service-connected disability.

Calculate your combined disability rating →

VA loan advantages: $0 down payment for eligible borrowers, no private mortgage insurance ever, competitive rates, no prepayment penalty, and limits on what sellers can pay in closing costs. The no-PMI feature is significant — PMI on a $350K home with 5% down can run $140–200/month until you reach 20% equity.

When conventional might make more sense:If you have 20%+ down payment (no PMI on conventional, and the VA funding fee adds cost), if you're on your second use and haven't waived the fee, or if you're buying an investment property (VA requires the home to be your primary residence). Vacation homes and investment properties are not eligible for VA loans.

The PMI math: On a $350K home with 5% down, conventional PMI at 0.5% of the loan amount runs about $143/month until you reach 20% equity — typically 7–10 years, depending on your payment rate and home value appreciation. The VA loan has no equivalent cost, which is why the VA loan is usually superior for borrowers with little money down.

VA loan occupancy: VA loans require you to occupy the home as your primary residence. Investment properties and vacation homes are not eligible.

VA loan eligibility is based on your service history and character of discharge. General eligibility:

• Active duty: 90 consecutive days during wartime, or 181 days during peacetime
• Veterans: Same service requirements, plus honorable or general discharge
• National Guard & Reserve: 6+ years of service, or 90+ days of active duty under Title 10 federal orders with qualifying discharge
• Surviving spouses: Unmarried spouses of veterans who died in service or from a service-connected disability, or who are missing in action / POW

Entitlement restoration:After paying off a previous VA loan and selling (or refinancing to a non-VA loan and restoring entitlement), your VA benefit can be fully restored and used again. The benefit does not expire — it's a lifetime benefit.

Get your Certificate of Eligibility to confirm your eligibility: VA.gov eBenefits →