VA Loan: 0% Down, No PMI
VA loans offer eligible veterans and service members 0% down payment, no PMI, and competitive rates. The funding fee (1.25–3.3%) helps fund the program; disabled veterans are exempt.
Why This Matters for Your Finances
Why: VA loans can save $100–300+/month vs conventional by eliminating PMI and often offering lower rates.
How: Monthly P&I uses the standard amortization formula. Add property tax and insurance for total housing cost.
- ●0% down and no PMI can save thousands vs conventional
- ●Funding fee: 2.15% first-time, 3.3% subsequent; disabled vets exempt
- ●Full entitlement = no dollar limit; lenders set limits by income/credit
- ●COE (Certificate of Eligibility) required from VA
📋 Quick Examples — Click to Load
📊 Monthly Payment Breakdown
P&I, tax, insurance
📊 Cost Composition
Principal vs interest vs funding fee
📊 VA vs Conventional vs FHA
Monthly payment comparison
📊 Balance Over Time
Amortization
⚠️For educational purposes only — not financial advice. Consult a qualified advisor before making decisions.
💡 Money Facts
VA has guaranteed over 26M loans since 1944
— VA.gov
10%+ disability rating = funding fee exempt
— VA.gov
No PMI saves typical borrower $100–300/month
— CFPB
Funding fee can be financed into the loan
— VA Lender Handbook
VA rates often 0.25–0.5% below conventional
— Bankrate
VA loans offer 0% down payment and no PMI—a major advantage for eligible veterans and service members. The funding fee (1.25%–3.3%) helps fund the program; disabled veterans are exempt. Monthly payment uses the standard formula: P×r(1+r)^n/((1+r)^n-1). With full entitlement, there is no loan limit. VA loans often beat conventional and FHA on total cost.
Sources: VA.gov, CFPB, VA Lender Handbook.
Key Takeaways
- • 0% down and no PMI can save $100–300+/month vs conventional
- • Funding fee: 2.15% first-time, 3.3% subsequent; disabled vets exempt
- • Full entitlement = no dollar limit; lenders set limits by income/credit
- • COE (Certificate of Eligibility) required from VA
Did You Know?
How Does a VA Loan Work?
Eligibility
Active-duty (90+ days), veterans with honorable discharge, certain Guard/Reserve (6+ years), surviving spouses. Get your COE from VA.gov or through your lender.
Funding Fee
1.25%–3.3% of loan amount. First-time, no down: 2.15%. Subsequent: 3.3%. Can be paid at closing or financed. Disabled veterans (10%+) and Purple Heart recipients are exempt.
Monthly Payment
Formula: P×r(1+r)^n/((1+r)^n-1). P = loan amount (home price + financed funding fee), r = monthly rate, n = months. Add property tax and insurance for total housing cost.
Expert Tips
VA vs Conventional vs FHA
| Feature | VA | Conventional | FHA |
|---|---|---|---|
| Down payment | 0% | 3–20% | 3.5% |
| PMI | No | Yes if <20% | MIP |
| Upfront fee | 1.25–3.3% | 0% | 1.75% |
Frequently Asked Questions
What is a VA loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, and surviving spouses. It offers 0% down payment, no PMI, and competitive rates. The VA doesn't lend directly—private lenders issue the loans with VA backing.
What is the VA funding fee?
The VA funding fee is a one-time charge (1.25%–3.3% of the loan amount) that helps offset the cost of the program. First-time use with no down payment: 2.15%. Subsequent use: 3.3%. Disabled veterans (10%+ rating) and Purple Heart recipients are exempt.
VA loan vs conventional?
VA: 0% down, no PMI, funding fee 1.25–3.3%. Conventional: typically 3–20% down, PMI if down <20%. VA often has lower rates and no PMI saves $100–300+/month. Conventional has no funding fee but requires more upfront cash.
Who is eligible?
Eligible: active-duty (90+ days), veterans with honorable discharge, certain National Guard/Reserve members (6+ years), surviving spouses of service members who died in service or from service-connected disability. Certificate of Eligibility (COE) required.
Is there a VA loan limit?
No dollar limit for full entitlement. With full entitlement, you can borrow any amount—lenders set limits based on income and credit. In high-cost areas, the guaranty may cap at 25% of the conforming limit. Most borrowers face no limit.
Can I use a VA loan more than once?
Yes. You can reuse your VA loan benefit. If you sell the home and pay off the loan, entitlement is restored. You can also have multiple VA loans if you have remaining entitlement. Subsequent use has a higher funding fee (3.3% vs 2.15%).
Key Statistics
Official Data Sources
⚠️ Disclaimer: This calculator is for educational purposes only. Actual VA loan terms, rates, and eligibility depend on lender and VA guidelines. Not financial advice. Consult a VA-approved lender and verify your COE.