Free VA Loan Calculator 2026

Calculate VA mortgage payments including funding fee, no PMI, zero down payment. Compare VA vs conventional. Updated June 2026.

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VA rates are typically 0.25-0.5% lower than conventional
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What Is a VA Loan?

VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs — the most powerful home financing tool available to veterans, active-duty service members, and surviving spouses.

Key advantages that set VA loans apart:

  • 0% down payment — Buy a home with nothing down
  • No PMI — Save $100-400/month vs conventional with less than 20% down
  • Lower interest rates — Typically 0.25-0.5% below conventional rates
  • No prepayment penalty — Pay off early without fees
  • Lenient credit requirements — No VA minimum; lenders typically require 620+
  • Assumable — Future buyer can take over your low rate

VA Loan Eligibility (2026)

  • Active duty: 90+ consecutive days during wartime, 181+ days during peacetime
  • National Guard/Reserves: 6 years of service, or 90+ days activated under Title 10/32
  • Surviving spouses: Unremarried spouse of veteran who died in service or from service-connected disability
  • Service-connected disability: Veterans discharged for service-connected disability may qualify with less service time
  • Get COE: Certificate of Eligibility required — apply online at va.gov or through your lender

VA Funding Fee (2026)

The VA funding fee is a one-time cost that funds the VA loan program. It can be paid cash at closing or rolled into the loan:

  • First use, 0% down: 2.15% of loan ($8,600 on $400K)
  • First use, 5-9.99% down: 1.50% ($6,000 on $400K)
  • First use, 10%+ down: 1.25% ($5,000 on $400K)
  • Subsequent use, 0% down: 3.30% ($13,200 on $400K)
  • Subsequent use, 5-9.99% down: 1.50%
  • Subsequent use, 10%+ down: 1.25%
  • Disabled veterans (10%+ rating): 0% — completely exempt

VA vs Conventional Loan: Side-by-Side

On a $400,000 home with 0% down (VA) vs 5% down (Conventional):

  • Down payment: VA $0 vs Conventional $20,000
  • Interest rate: VA ~6.0% vs Conventional ~6.5%
  • PMI: VA $0 vs Conventional ~$210/month
  • Monthly P&I: VA $2,398 vs Conventional $2,429 (on $380K loan)
  • Monthly total: VA $2,398 vs Conventional $2,639 (P&I + PMI)
  • First year savings: VA saves ~$20,000+ (no down payment + no PMI)

VA Loan Entitlement Explained

  • Full entitlement: Basic entitlement = $50,750 (25% of conforming limit). With full entitlement, you can borrow any amount with 0% down
  • Bonus entitlement: Additional entitlement in high-cost areas
  • Restoring entitlement: Sell your home and pay off the VA loan to restore full entitlement
  • Two VA loans at once: Possible if remaining entitlement covers the new loan. Example: Used $200K of entitlement, have $200K+ remaining — can get another VA loan
  • Partial entitlement: If you still own the home with a VA loan, you can use remaining entitlement for a second home

Common VA Loan Mistakes to Avoid

  • Not getting COE first: Start with your Certificate of Eligibility — it tells you your entitlement status
  • Not shopping lenders: VA rates and fees vary significantly. Get 3+ quotes
  • Assuming VA is always cheapest: With 20% down and 780+ credit, conventional may beat VA (no funding fee)
  • Overlooking funding fee exemption: If you're 10%+ disabled, you're exempt — always claim this
  • Not using entitlement again: Many vets don't realize they can use VA loans multiple times
  • Ignoring VA appraisal issues: VA appraisals are stricter (Minimum Property Requirements). Be prepared for repair requests

Frequently Asked Questions

What is a VA loan and who is eligible?

VA loans are mortgages guaranteed by the VA. Eligible: veterans with 90+ days active duty (wartime) or 181+ days (peacetime), 6 years Guard/Reserves, or surviving spouses. No down payment, no PMI, competitive rates.

What is the VA funding fee?

2.15% for first-time use with 0% down, 3.3% for subsequent use. Lower with down payment: 1.5% at 5% down, 1.25% at 10%+ down. Disabled veterans (10%+ rating) are completely exempt. Can be rolled into the loan.

VA loan vs conventional — which is better?

VA wins for eligible borrowers: 0% down, no PMI, lower rates, no prepayment penalty. Conventional only wins with 20%+ down and excellent credit where the VA funding fee costs more than rate differences.

Can I use a VA loan more than once?

Yes. Entitlement restores after selling and paying off the loan. You can have multiple VA loans with enough remaining entitlement. Funding fee increases to 3.3% for subsequent use with 0% down.

What are the VA loan limits in 2026?

With full entitlement, there is NO loan limit — 0% down on any price. With partial entitlement, limits align with conforming limits: $766,550 most areas, up to $1,149,825 in high-cost areas.

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