VA Mortgage Calculator

VA loans are mortgages guaranteed by the Department of Veterans Affairs for active-duty service members, veterans, National Guard/Reserve members, and eligible surviving spouses. Benefits: 0% down payment, no PMI required, competitive interest rates, limited closing costs, more lenient credit requirements (620+ typically). Eligibility requires a Certificate of Eligibility (COE) showing sufficient service time: 90+ consecutive days active duty during wartime, 181+ days during peacetime, 6+ years National Guard/Reserve, or spouse of service member who died in line of duty or from service-connected disability.

VA funding fee is a one-time charge (1.4-3.6% of loan amount) that helps offset program costs to taxpayers. Fee varies by: Down payment (0% down = 2.3% first use, 3.6% subsequent; 5-10% down = 1.65%; 10%+ down = 1.4%), military category (regular military, reserves/guard), first-time vs subsequent use. EXEMPTIONS: Veterans receiving VA disability compensation, veterans eligible for disability but receiving retirement pay instead, surviving spouses of veterans who died in service or from service-connected disabilities. Fee can be rolled into loan amount or paid upfront.

VA loans have NO maximum loan limit as of 2020 for most borrowers with full entitlement. However: Lenders still impose limits based on income, debt-to-income ratio (typically 41% max), credit score, and property value. VA guarantees up to 25% of loan amount (or $36,000 minimum). Entitlement: $36,000 basic + additional based on county conforming limits. Most veterans can borrow up to conforming limit ($766,550 in 2024 for most counties, higher in expensive areas) with $0 down and no PMI. Reduced entitlement: If you have existing VA loan, remaining entitlement determines how much you can borrow for second home.

PROS: $0 down payment (100% financing), no PMI ever (saves $100-200/month), lower interest rates (0.25-0.5% below conventional), lenient credit requirements, no prepayment penalty, limited closing costs (seller can pay up to 4%), assumable by qualified buyers, easier to refinance with VA Streamline (IRRRL). CONS: VA funding fee (1.4-3.6% unless exempt), must be primary residence (no investment properties), property must meet VA appraisal standards (may be stricter), limited to veterans/eligible service members only, some sellers prefer conventional buyers (misconception about difficulty).

VA vs FHA: VA has 0% down (FHA 3.5%), no PMI (FHA requires MIP for loan life if <10% down), lower funding fee than FHA MIP, better rates, but FHA available to non-veterans. VA vs Conventional: VA has 0% down (conventional 3-20%), no PMI at 0% down (conventional requires PMI until 20% equity), slightly lower rates, but conventional has higher loan limits and fewer property restrictions. Best choice: VA loan is almost always best for eligible veterans due to no PMI and $0 down - saves tens of thousands over loan life. Only use conventional if: Buying investment property, need jumbo loan exceeding VA entitlement, or VA appraisal issues.