How to use this calculator
- Home price and down payment. VA loans don’t require a down payment if you have full entitlement, so the default is $0. Putting 5% or 10% down lowers the funding fee.
- Interest rate and loan term. Use a rate quote from a lender. Most VA purchase loans are 30-year or 15-year fixed.
- VA loan use. Choose Used before if you’ve had a VA-backed loan in the past. It only matters when you put less than 5% down.
- Funding fee exempt? Choose Yes if you receive VA disability compensation or another exemption applies (see below).
- Funding fee. Add it to the loan (most borrowers do) or pay it at closing.
- Taxes, insurance and HOA. Enter your county’s property tax rate, your homeowners insurance premium and any HOA dues.
The results split your monthly payment into its parts, show the funding fee, and include a year-by-year amortization table you can download.
The VA funding fee
The funding fee is a one-time charge that keeps the VA home loan program running for future borrowers. For purchase and construction loans, VA.gov lists these rates, effective April 7, 2023:
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
The fee is a percentage of the loan amount, not the price. Cash-out refinances cost 2.15% on first use and 3.3% after, and an interest rate reduction refinance loan (IRRRL) costs 0.5%.
You don’t pay the funding fee if you receive VA compensation for a service-connected disability, are eligible for that compensation but receive retirement or active-duty pay instead, are a surviving spouse receiving Dependency and Indemnity Compensation, have a proposed or memorandum disability rating issued before closing, or are on active duty and show evidence of a Purple Heart on or before closing.
How the payment is calculated
First the calculator adds the funding fee to the loan (if you finance it), then works out principal and interest with the standard amortization formula:
- L is the loan amount, including a financed funding fee
- r is the monthly interest rate (annual rate ÷ 12)
- n is the number of monthly payments
Property tax (price × tax rate ÷ 12), insurance (annual premium ÷ 12) and HOA dues are added on top. There’s no line for mortgage insurance because VA loans don’t have any.
Worked example
A first-time VA borrower buys a $400,000 home with no down payment at 6.25% for 30 years, with a 1.1% property tax rate and $1,800 a year of insurance.
- Funding fee: 2.15% × $400,000 = $8,600, added to the loan
- Loan amount: $408,600
- Principal and interest: $2,515.82
- Property tax: $366.67; insurance: $150.00
- Total monthly payment: $3,032.49
If the same borrower paid the $8,600 fee at closing instead, principal and interest would be $2,462.87, about $53 a month less, and total interest over 30 years would fall from $497,096 to $486,632.
How down payment and prior use change the fee
Here’s the same $400,000 home at 6.25% for 30 years, with the fee financed:
| Scenario | Fee rate | Funding fee | Loan amount | Principal & interest |
|---|---|---|---|---|
| First use, 0% down | 2.15% | $8,600 | $408,600 | $2,515.82 |
| First use, 5% down | 1.5% | $5,700 | $385,700 | $2,374.82 |
| First use, 10% down | 1.25% | $4,500 | $364,500 | $2,244.29 |
| After first use, 0% down | 3.3% | $13,200 | $413,200 | $2,544.14 |
| Exempt, 0% down | 0% | $0 | $400,000 | $2,462.87 |
For a repeat user, a 5% down payment cuts the fee by $7,500 on this home. That alone covers more than a third of the $20,000 down payment.
VA loan limits and entitlement in 2026
If you have full entitlement, there is no VA loan limit. County loan limits stopped applying to these borrowers on January 1, 2020, under the Blue Water Navy Vietnam Veterans Act of 2019. You still have to qualify with a lender, and the loan is capped at the lower of the appraised value or the price, plus any financed funding fee.
You have full entitlement if you’ve never used the benefit, or if you’ve repaid a prior VA loan in full and sold the home (or had your entitlement restored). If part of your entitlement is still tied up in another VA loan, your remaining guaranty is based on the county’s conforming loan limit. For 2026 that limit is $832,750 in most of the country and up to $1,249,125 in high-cost areas, per the Federal Housing Finance Agency. A loan above what your remaining entitlement covers usually needs a down payment.
The residual income guideline
VA underwriting looks at two things besides your credit: your debt-to-income ratio and your residual income, the cash left each month after the new house payment, taxes, other debts and an estimate for maintenance and utilities. The standard for debt-to-income is 41% or less; above that, the loan can still be approved, and it skips an extra level of review if residual income is at least 20% above the guideline.
The minimums in 38 CFR 36.4340 depend on region, family size and loan size. For loans of $80,000 and above:
| Family size | Northeast | Midwest | South | West |
|---|---|---|---|---|
| 1 | $450 | $441 | $441 | $491 |
| 2 | $755 | $738 | $738 | $823 |
| 3 | $909 | $889 | $889 | $990 |
| 4 | $1,025 | $1,003 | $1,003 | $1,117 |
| 5 | $1,062 | $1,039 | $1,039 | $1,158 |
Add $80 for each family member beyond five. This calculator doesn’t compute residual income, because the result depends on your take-home pay and how your lender estimates maintenance and utilities. Your lender will run the numbers. You can get a first look at your ratios with the debt-to-income ratio calculator.
Assumptions and limitations
- The payment shown is for a fixed-rate loan. Taxes and insurance are held constant, though both usually rise over time.
- The funding fee is based on your down payment as a share of the price, per the VA.gov table. Cash-out refinance and IRRRL fees aren’t modeled; use the refinance calculator for those.
- Other closing costs (appraisal, title, lender fees) aren’t included. Estimate them with the closing cost calculator.
- To see how a VA loan compares with other programs, try the FHA loan calculator or the down payment calculator, and check what price fits your budget with the home affordability calculator.
Sources
- VA funding fee and other closing costs (VA.gov): funding fee rates effective April 7, 2023, and exemptions
- VA home loan entitlement and limits (VA.gov)
- 38 CFR 36.4340, underwriting standards (eCFR): debt-to-income standard and residual income tables
- FHFA announces conforming loan limit values for 2026
This calculator gives estimates for planning, not a loan offer. Your lender’s Loan Estimate will show your actual rate, funding fee and costs.
Frequently asked questions
How much is the VA funding fee in 2026?
For a purchase loan it's 2.15% of the loan on first use with less than 5% down, or 3.3% if you've used the benefit before. With 5% down it drops to 1.5%, and with 10% or more it's 1.25%, whether or not it's your first use. These rates have been in effect since April 7, 2023, and VA.gov still lists them.
Who doesn't have to pay the VA funding fee?
You're exempt if you receive VA compensation for a service-connected disability, or are eligible for it but receive retirement or active-duty pay instead. Surviving spouses receiving Dependency and Indemnity Compensation are exempt, as are service members with a pre-discharge disability rating issued before closing and active-duty members who show proof of a Purple Heart.
Is there a VA loan limit in 2026?
Not if you have full entitlement. Since January 1, 2020, VA has not applied county loan limits to borrowers with full entitlement, though your lender still decides how much you qualify for. If some of your entitlement is tied up in another VA loan, the county's conforming limit (a $832,750 baseline in most counties for 2026) sets your remaining guaranty, and a larger loan may need a down payment.
Do VA loans have PMI?
No. VA loans don't charge monthly mortgage insurance at any down payment, because the VA guaranty protects the lender instead. The one-time funding fee takes its place, and it can be added to the loan.
Should I finance the funding fee or pay it in cash?
Financing it means no extra cash at closing but a slightly higher payment and more interest. In this calculator's default example, financing the $8,600 fee adds about $53 a month and roughly $10,500 of interest over 30 years. Paying it up front makes sense if you have the cash and plan to keep the loan a long time.
What is VA residual income?
It's the money left each month after your mortgage payment, taxes, debts and estimated maintenance and utilities. VA sets minimum amounts by region, family size and loan size, and lenders check it alongside your debt-to-income ratio. It's one reason VA loans have low default rates despite allowing no down payment.
Updated November 2026. Results are estimates for educational purposes and depend on the inputs you provide.