What Is a VA Mortgage?

A VA mortgage is a home loan guaranteed by the U.S. Department of Veterans Affairs (VA), designed to help active-duty service members, veterans, and eligible surviving spouses buy or refinance a home. VA loans often allow $0 down payment, no monthly private mortgage insurance (PMI), and competitive interest rates.

How Our VA Mortgage Calculator Works

  • Home price – enter the total purchase price of the home.

  • Down payment (optional) – VA loans typically require no down payment, but entering one can lower your costs.

  • Loan term & rate – choose your loan length (15- or 30-year) and interest rate.

  • VA funding fee – add a one-time fee required on most VA loans (can be financed). Exemptions apply for some veterans.

  • Taxes & insurance – enter estimates to see your full payment (PITI).

The calculator shows:

  • Principal & Interest (P&I)

  • VA Funding Fee (if financed)

  • Estimated Taxes & Insurance

  • Total Monthly Payment


VA Funding Fee Explained

  • What is it? A one-time fee charged by the VA to help keep the program sustainable.

  • How much? The percentage depends on down payment, service history, and whether it’s your first or subsequent VA loan.

  • Who is exempt? Veterans with a service-connected disability rating, Purple Heart recipients, and certain others may be exempt.

  • Can it be financed? Yes. Most borrowers choose to roll it into the loan amount.


Why Choose a VA Loan?

  • No down payment required for most borrowers.

  • No monthly PMI (a big savings compared to FHA or Conventional).

  • Competitive interest rates, often lower than other loan types.

  • Flexible credit standards compared to some conventional mortgages.

  • Assumable loans — future buyers may assume your VA loan at your locked-in rate.


Example VA Loan Payment (for illustration)

  • Home price: $300,000

  • Down payment: $0

  • Base loan: $300,000

  • + VA funding fee (2.3% financed): $6,900 → new loan $306,900

  • Rate/term: 30-year fixed at an assumed rate
    Your monthly payment would include P&I + taxes + homeowners insurance. No monthly PMI applies. Actual results depend on your rate, county taxes, and VA eligibility.


VA Loan Eligibility & Limits

To qualify for a VA loan, you must meet service requirements (length of service, duty status, or discharge type). You’ll also need to provide a Certificate of Eligibility (COE).

While VA loans don’t have strict loan limits anymore for most borrowers, lenders may still cap maximum amounts based on income, credit, and debt-to-income ratios.