Estimate a VA home loan payment with $0 down and the VA funding fee. See your loan amount, the financed funding fee, and monthly principal & interest — no PMI, ever.
$0 down • VA funding fee • no PMI
VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs for eligible service members, veterans, and surviving spouses. Their headline benefits: no down payment required and no private mortgage insurance (PMI), ever. In place of PMI, most borrowers pay a one-time VA funding fee, which can be financed into the loan. The fee varies by service type, down payment, and whether it's your first VA loan — commonly 2.15% for a first-time use with no down payment, dropping with larger down payments and waived entirely for veterans with a service-connected disability.
For example, a $350,000 home with $0 down has a base loan of $350,000. A 2.15% funding fee adds $7,525, financed into a total loan of $357,525. At 6.25% over 30 years, that's about $2,202/month in principal and interest — with no monthly mortgage insurance on top, which is where VA loans save borrowers the most versus FHA or low-down conventional loans.
Eligible borrowers can finance 100% of the purchase price up to the county loan limit — no down payment needed.
VA loans never charge monthly mortgage insurance, unlike FHA and low-down conventional loans — a major monthly savings.
A one-time fee (often ~2.15% first use, 0 down), usually financed. Larger down payments lower it; disabled veterans are exempt.
Veterans, active-duty service members, National Guard/Reserves with sufficient service, and many surviving spouses — with a valid Certificate of Eligibility.
VA loans are guaranteed by the Department of Veterans Affairs for eligible service members, veterans and surviving spouses, and they are structurally the most favourable mortgage in the US market: no down payment, no mortgage insurance of any kind, and typically rates slightly below conventional. In place of ongoing insurance there is a one-time funding fee, which varies with down payment and whether this is a first or subsequent use, and is waived entirely for veterans receiving disability compensation. Because there is no monthly insurance premium, the payment is simply principal, interest and escrow.
Funding fee = Loan amount × fee rate (2.15% first use, 3.3% subsequent, 0% if exempt)Total loan = Base loan + Funding fee (usually financed)Payment = P&I only — no mortgage insurance at any LTVwhere:
Assumptions: Requires a Certificate of Eligibility and the property must be a primary residence meeting VA minimum property requirements. The funding fee is a one-off, not a recurring premium.
SourceVA-backed home loans
The same house as the FHA example, financed through a VA loan for comparison.
Result$2,115.91 a month with no deposit and no mortgage insurance
The VA loan is $125 a month cheaper than FHA while requiring $11,900 less cash at closing. If the borrower is disability-exempt from the funding fee the loan drops to $340,000 and the payment to $2,071.38 — roughly $170 a month below the FHA equivalent, and about $61,000 less over the full term.