VA Mortgage Calculator

What is a VA Loan?

A VA loan is a home loan backed by the U.S. Department of Veterans Affairs. It’s available to eligible veterans, active-duty service members, National Guard and Reserve members, and certain surviving spouses. To qualify, you typically need a DD Form 214 (Certificate of Release or Discharge from Active Duty), showing you served honorably.

These loans are designed to make homeownership more accessible for those who have served and are known for lower foreclosure rates compared to conventional mortgages.

VA Funding Fee Overview

The VA funding fee is a one-time charge required on most VA loans. It helps keep the VA loan program self-sustaining and ranges from 0% to 3.3% of the loan amount. Factors like down payment size, first-time use, or prior use of a VA loan affect the fee rate.

Veterans receiving VA disability benefits (10% or more) or eligible surviving spouses are exempt from paying the funding fee.

This fee can be rolled into the loan amount, but other closing costs must typically be paid out of pocket or negotiated with the seller.

VA Funding Fee Chart

Other VA Loan Types:

• IRRRL (Streamline Refinance): 0.5%

• Loan Assumption: 0.5%

• Manufactured Homes (Non-Permanent): 1.0%

Common VA Loan Closing Costs

While the VA restricts what borrowers can pay, some standard closing costs include:

• Loan Origination Fee – Lender’s admin fee (usually up to 1%)

• Discount Points – Optional fee to reduce your interest rate

• Credit Report Fee – Covers the lender’s credit check

• Appraisal Fee – Determines property value for loan limits

• Homeowners Insurance & Property Taxes – Often prepaid at closing

• Title Insurance – Ensures property is free of liens

• Recording Fees – Charged by your local government

Note: VA buyers typically cannot pay broker commissions, real estate agent fees, or termite inspection costs in some states.

Advantages of VA Loans

• No Down Payment Required

• No Private Mortgage Insurance (PMI)

• Competitive Interest Rates

• Reusable Benefit

• No Prepayment Penalty

• VA Appraisals Help Prevent Overpaying

Disadvantages of VA Loans

• Eligibility is Limited to veterans, service members, and some spouses

• Funding Fee Can Be High unless you qualify for an exemption

• Cannot Be Used for Investment Properties

• Limited Lender Options (not all lenders offer VA loans)

• Does Not Cover Major Home Repairs or Flips

• Requires More Paperwork than conventional loans

Still, for many veterans, the benefits—especially zero down payment and no PMI—can significantly outweigh the drawbacks.

VA Loan Prepayment: No Penalties

VA loans allow you to make extra payments or pay off your loan early without any penalties. This can reduce interest paid over the life of the loan and help pay off your mortgage faster.

You can explore this feature using the “Extra Payments” section of our calculator to estimate potential savings.

Legal Note (Title 38, eCFR):
“The debtor shall have the right to prepay at any time, without premium or fee, the entire indebtedness or any part thereof not less than the amount of one installment, or $100, whichever is less.”

VA Loan Affordability

To estimate how much house you can afford with a VA loan, try our House Affordability Calculator. Be sure to select the VA loan option to adjust the Debt-to-Income (DTI) ratio accordingly.

Even if your DTI is higher than average, you may still qualify based on compensating factors, such as strong credit or steady income.