If you’ve ever run a mortgage calculator and wondered “Why do these numbers look so different?”—you’re not alone.
Each loan type (VA, FHA, and Conventional) has unique rules for fees, insurance, and down payments. To get accurate estimates, you need to enter the right settings.
This guide walks you through exactly how to configure your calculator for each loan type, with real examples and links to the right tools.
👉 Start with the VA Loan Calculator to compare the baseline payment, then adjust for FHA and Conventional below.
1. The Three Loan Types at a Glance
| Feature | VA Loan | FHA Loan | Conventional Loan |
|---|---|---|---|
| Down Payment | 0% (sometimes optional) | 3.5% minimum | 3%–20%+ |
| Credit Score Flexibility | Flexible | Moderate | Tight (usually ≥ 620) |
| Upfront Fees | Funding Fee (1.25–3.3%) | Upfront MIP (1.75%) | None |
| Monthly Insurance | None (but funding fee applies) | Annual MIP | PMI if <20% down |
| Eligible Borrowers | Veterans, active-duty, surviving spouses | Anyone (must meet FHA limits) | Anyone (within conforming limits) |
2. Setting Up the Calculator for a VA Loan
Use the VA Loan Calculator and follow these inputs:
Down payment: Usually 0% (enter 0 unless you plan to put more down).
Funding fee: Enter 2.15% for first-time use, or 3.3% for subsequent use.
Add to loan amount: Check “Yes” if you plan to finance the fee.
PMI: Leave off—VA loans don’t use monthly mortgage insurance.
Property type: Select “Primary residence.”
Example:
$400,000 home, 0% down, 2.15% funding fee financed.
Loan = $408,600
6.5% rate → Payment ≈ $2,583/month (P&I only)
Use this as your baseline for comparison with FHA and Conventional.
3. Setting Up the Calculator for an FHA Loan
Switch to the FHA Mortgage Calculator
Settings:
Down payment: Minimum 3.5%
Upfront MIP: 1.75% of base loan amount (added to loan).
Annual MIP: Typically 0.55% (included monthly).
Loan term: 30 years unless you qualify for a 15-year FHA.
Example:
$400,000 home, 3.5% down ($14,000).
Loan = $386,000 + 1.75% upfront MIP ($6,755) → $392,755.
Rate 6.5% → P&I = $2,482
Add monthly MIP ($180) → $2,662 total
FHA takeaway: Lower entry cost, higher long-term carrying cost.
4. Setting Up the Calculator for a Conventional Loan
Use either the Conventional Loan Calculator or the general Mortgage Calculator
Settings:
Down payment: 5% minimum (20% removes PMI).
PMI: 0.5–1.0% annually, depending on credit score.
No upfront fees: Unless you buy discount points.
Rate: Typically lower than FHA by 0.125–0.25% for strong credit.
Example:
$400,000 home, 5% down ($20,000).
Loan = $380,000
6.375% rate → P&I = $2,376
PMI (0.6%) = $190/month → $2,566 total
Conventional takeaway: Best for high-credit borrowers who can hit 20% equity quickly.
5. Comparing Total Monthly Payments Side by Side
| Loan Type | Loan Amount | Rate | Key Fees | Monthly Payment (P&I+Ins.) |
|---|---|---|---|---|
| VA | $408,600 | 6.5% | Funding Fee (2.15%) | $2,583 |
| FHA | $392,755 | 6.5% | Upfront + Annual MIP | $2,662 |
| Conventional | $380,000 | 6.375% | PMI (0.6%) | $2,566 |
Winner (short-term): Conventional (lowest monthly).
Winner (long-term): VA (no PMI, funding fee is one-time).
Best for:
VA: Eligible veterans with little/no down payment.
FHA: First-time buyers with lower credit.
Conventional: Buyers with 700+ credit and 5–20% down.
6. Refinancing Comparison: VA IRRRL vs FHA Streamline
If you already have a government-backed loan:
| Feature | VA IRRRL | FHA Streamline |
|---|---|---|
| Refinance Type | VA → VA | FHA → FHA |
| Upfront Fee | 0.5% funding fee | 1.75% upfront MIP |
| Monthly Insurance | None | Annual MIP continues |
| Documentation | Minimal | Moderate |
| Reuse Eligibility | Unlimited | FHA only |
7. How Down Payment and Equity Affect Insurance
VA: No monthly insurance regardless of down payment.
FHA: MIP stays for life (if <10% down) or at least 11 years (if ≥10% down).
Conventional: PMI automatically drops at 78% LTV, or you can request removal at 80%.
To see the crossover point, open the Amortization Schedule Calculator and track when your loan balance reaches those levels.
8. Which Calculator Should You Use?
| Goal | Best Calculator |
|---|---|
| VA loan payment accuracy | VA Loan Calculator |
| FHA-specific MIP details | FHA Mortgage Calculator |
| Side-by-side comparisons | Mortgage Calculator |
| Extra payment scenarios | Extra Payment Mortgage Calculator |
9. Tips for Accurate Calculator Results
Include property taxes and insurance for true affordability.
Don’t double-count fees—if you roll them in, they’re already part of the loan.
Match term and rate between loans for apples-to-apples comparison.
Use today’s rates (not last week’s) for precision.
You can find updated rate trends in Mortgage Interest Rates Forecast
10. Key Takeaways
VA, FHA, and Conventional loans use the same math—but different inputs.
Always enter the correct funding fee or MIP/PMI to see accurate payments.
VA is strongest for eligible borrowers with low down payments.
Conventional wins for buyers with 20% down and good credit.
FHA helps those rebuilding credit or with limited savings.
FAQ
Why is my VA loan payment higher than expected?
Because the funding fee was financed into the loan amount. Paying it upfront can lower your monthly cost.Does FHA MIP ever go away?
Yes, but only if you put 10%+ down; otherwise, it lasts for the life of the loan.When can PMI be removed on a conventional loan?
Automatically at 78% LTV or by request at 80%, based on current home value.Can I switch from FHA to Conventional later?
Yes—many borrowers refinance once their credit or equity improves to drop MIP and lower payments.