VA loans need no down payment and charge no monthly mortgage insurance, but most borrowers pay a one-time funding fee. See the payment and the financed fee.
A VA loan is a mortgage backed by the Department of Veterans Affairs for eligible service members and veterans. It requires no down payment and charges no monthly mortgage insurance, but most borrowers pay a one-time funding fee. This estimates the payment and the financed fee.
In place of monthly mortgage insurance, VA loans charge a one-time funding fee that helps sustain the program. The fee is higher on later uses and lower or waived with a down payment; veterans receiving disability compensation are often exempt. The fee is usually financed into the loan, so it raises the balance rather than the cash due at closing.
Because VA loans skip monthly mortgage insurance entirely, the payment is often lower than a comparable FHA or low-down conventional loan, even with the funding fee. Combined with no down payment and competitive rates, that makes the VA loan one of the strongest options for those who qualify.
Eligible borrowers can finance up to the full price with no down payment, subject to the lender and appraisal.
Veterans receiving VA disability compensation, and certain surviving spouses, are typically exempt. Select the exempt option to model that.
No. VA loans carry no monthly mortgage insurance, which is a major cost advantage over FHA and low-down conventional loans.
See the exact formula and a worked example on our methodology page.