VA Loan Calculator

It depends on the loan type, your down payment, and whether you've used a VA loan before. For a first-use purchase it's 2.15% of the loan with less than 5% down, 1.5% with 5% or more down, and 1.25% with 10% or more down. After first use, the rate with less than 5% down rises to 3.3%. A cash-out refinance is 2.15% (first use) or 3.3% (after first use), and an IRRRL is 0.5%. For example, a first-time buyer borrowing $300,000 with no down payment pays a fee of $6,450.

According to VA, you don't pay the fee if any of these apply: you receive VA compensation for a service-connected disability; you're eligible for that compensation but receive retirement or active-duty pay instead; you're a surviving spouse receiving Dependency and Indemnity Compensation (DIC); you're a service member who got a proposed or memorandum rating before closing saying you're eligible for compensation based on a pre-discharge claim; or you're on active duty and show proof of a Purple Heart on or before closing. If you're later awarded disability compensation that's retroactive to before your closing date, you may be able to get the fee refunded.

No. In most cases, a borrower with full entitlement can buy with no down payment, as long as the lender approves the loan and the appraisal supports the price. A down payment is optional. Putting at least 5% down lowers the funding fee, and 10% lowers it a little more.

No. VA loans have no monthly mortgage insurance, even with no down payment. The one-time funding fee takes its place and helps cover the program's cost to taxpayers. By contrast, FHA loans charge an upfront and an annual premium, and conventional loans with less than 20% down usually require PMI.

Not if you have full entitlement. Since January 1, 2020, under the Blue Water Navy Vietnam Veterans Act of 2019, VA has no county loan limits for borrowers with full entitlement. You can borrow as much as a lender approves and the appraisal supports. If you have a VA loan still outstanding, or used entitlement that hasn't been restored, county limits still apply to how much VA guarantees, and you may need a down payment on a larger loan.

Most borrowers finance it, which this calculator does by default, so it doesn't add to the cash needed at closing. The trade-off is interest: a financed fee is repaid over the loan's life. Paying it in cash lowers your loan amount, payment, and total interest a little. Sellers can also pay the fee as part of their concessions, which VA limits to 4% of the home's reasonable value.

The COE shows your lender that you qualify for the VA home loan benefit. Eligibility depends on your service history and duty status. Veterans, service members, National Guard and Reserve members, and some surviving spouses can qualify. You can request a COE online through VA.gov or by mail, or your lender may be able to get it for you through VA's online system.

Residual income is the money left each month after your housing payment, debts, taxes, and estimated maintenance and utilities. VA underwriters check it along with your debt-to-income ratio. Usually you need to meet both standards, and a DTI above 41% needs strong residual income or other compensating factors. The minimum residual income depends on your family size and region.

Yes, in part. On a VA loan, the lender's origination charge can be at most a flat 1% of the loan amount, in place of itemized origination fees, and VA limits which other fees you can be charged. Seller concessions are capped at 4% of the home's reasonable value, though there's no cap on seller credits toward normal closing costs. On a purchase, the funding fee is the only cost you can finance into the loan.

An IRRRL (a "streamline" refinance) replaces an existing VA loan with one at a lower rate or a more stable structure, such as moving from an adjustable to a fixed rate. It has a 0.5% funding fee and usually no appraisal. A cash-out refinance can replace any mortgage, VA or not, and let you take cash out of your equity, up to 100% of the home's value. It costs more: 2.15% on first use or 3.3% after that.