VA Loan Calculator

2026 VA Loan Overview

VA home loans are a benefit earned through military service. They are backed by the U.S. Department of Veterans Affairs, which allows lenders to offer favorable terms — including no down payment requirement, no private mortgage insurance (PMI), and competitive interest rates — to eligible veterans, active-duty service members, and qualifying surviving spouses.

VA Funding Fee — 2026 Rates (Effective April 7, 2023)

The VA funding fee is a one-time charge that helps sustain the VA home loan program for future generations of veterans. The fee is calculated as a percentage of the loan amount and varies by loan type, down payment amount, and whether it is your first or subsequent use of the VA loan benefit.

For purchase and construction loans (regular military, active duty, National Guard and Reserves): First use with less than 5% down = 2.15%; first use with 5% or more down = 1.5%; first use with 10% or more down = 1.25%. Subsequent use with less than 5% down = 3.3%; subsequent use with 5% or more or 10% or more down = 1.5% and 1.25% respectively.

For cash-out refinances: First use = 2.15%; subsequent use = 3.3% (down payment does not affect the rate). For IRRRLs (Interest Rate Reduction Refinance Loans): flat 0.5% regardless of usage or down payment.

Who Is Exempt from the Funding Fee?

You do not pay a VA funding fee if you are: receiving VA compensation for a service-connected disability; eligible to receive VA compensation but receiving retirement or active-duty pay instead; a surviving spouse receiving Dependency and Indemnity Compensation (DIC); a service member with a proposed or memorandum disability rating before your loan closing date; or an active-duty member who received a Purple Heart on or before your closing date. If you later receive a retroactive disability award, you may be eligible for a refund.

No Down Payment Required

One of the most powerful features of a VA loan is the ability to purchase a home with zero down payment — as long as you have full entitlement and the purchase price does not exceed the appraised value. While no down payment is required, making a down payment of 5% or more reduces your funding fee and lowers your monthly payment.

No Private Mortgage Insurance (PMI)

VA loans do not require PMI regardless of the down payment amount. This is a significant cost advantage over FHA and conventional loans with less than 20% down. The absence of monthly PMI can save veterans hundreds of dollars per month compared to other low-down-payment loan programs.

VA Loan Limits and Entitlement

Veterans with full entitlement (no prior VA loan balance or a prior VA loan fully paid off) have no loan limit — they can borrow as much as a lender approves without a down payment. Veterans with remaining entitlement (an existing VA loan still outstanding) may be subject to county-level conforming loan limits when determining how much they can borrow without a down payment. As of 2026, conforming loan limits are $806,500 in most counties and up to $1,209,750 in high-cost areas.

Financing the Funding Fee

The VA funding fee can be paid at closing or financed into the loan amount. Most borrowers choose to finance it, which slightly increases the loan balance and monthly payment but avoids an out-of-pocket expense at closing. The calculator above finances the funding fee into the total loan by default — consistent with how most VA loans are structured.