VA Mortgage Calculator Formula & How It Works
VA Funding Fee = Loan Amount × Fee Rate (1.25–3.3%) | Loan + Funded Fee = Total Loan Amount
- No down payment required (100% financing available)
- No PMI — a major VA benefit saving $100–$200/month vs conventional
- Funding fee varies: 1.25% (10%+ down), 2.15% (first use, 0% down), 3.3% (subsequent use)
- Disabled veterans may be exempt from funding fee
VA loans, backed by the Department of Veterans Affairs, allow eligible veterans, active duty service members, and surviving spouses to buy homes with no down payment and no PMI. The VA funding fee (paid at closing or financed) partially offsets the program cost. The absence of PMI typically saves $150+ per month vs. a 0%-down conventional loan.