VA Loan Calculator
Estimate your VA funding fee using the 2026 purchase-loan rates, then see the monthly payment, total interest and total cost with the fee financed or paid upfront. Free, no sign-up, runs in your browser.
P&I only; property taxes and homeowners insurance are extra but VA loans never charge monthly PMI. Funding fee tiers follow the 2026 VA purchase-loan schedule. Exempt borrowers pay no fee.
How the VA funding fee is calculated
The fee is a percentage of the loan amount, not the home price, and the tier depends on your down payment and use history. For 2026 purchase loans: first use with less than 5% down is 2.15%, subsequent use with less than 5% down is 3.3%, 5% or more down is 1.50% for both, and 10% or more down is 1.25% for both. On a $350,000 purchase with $0 down and first use, the base loan is $350,000 and the fee is $7,525. Financed, the loan becomes $357,525 and you pay interest on the fee for the whole term.
The disability exemption matters a lot. Veterans who receive VA disability compensation, Purple Heart recipients on active duty, and eligible surviving spouses pay no funding fee at all. On the same $350,000 example, that exemption saves $7,525 upfront, and roughly $46 a month if the fee would otherwise be financed at 6.25%. If your disability claim is pending at closing, you may be able to get a refund of the fee once the rating is awarded, so ask your lender before paying it.
Why VA loans are usually the cheapest way to buy
VA loans combine three advantages no conventional product matches: zero down payment, no monthly mortgage insurance, and rates that typically run a quarter to a half point below conventional loans. A conventional buyer putting 3% down on $350,000 pays PMI of roughly $100 to $200 a month until reaching 20% equity; a VA borrower pays nothing monthly, only the one-time funding fee. Even with the fee financed, the VA path usually wins on both monthly cost and total cost. The main trade-off is the subsequent-use fee: if you reuse the benefit with little down, the 3.3% charge can make a conventional loan with 5% down worth comparing.
| 2026 VA funding fee (purchase loan) | First use | Subsequent use |
|---|---|---|
| Less than 5% down | 2.15% | 3.30% |
| 5% or more down | 1.50% | 1.50% |
| 10% or more down | 1.25% | 1.25% |
| With VA disability exemption | $0 (waived) | $0 (waived) |
Frequently asked questions
What is the VA funding fee?
The VA funding fee is a one-time charge on VA-backed purchase loans that helps keep the program running. It is a percentage of the loan amount, based on your down payment and whether this is your first or a subsequent use of the benefit. On a purchase loan in 2026 it runs from 1.25% to 3.3%. You can pay it at closing or finance it into the loan, and most borrowers finance it.
What are the 2026 VA funding fee rates for a purchase loan?
For a purchase with less than 5% down, the fee is 2.15% for first use and 3.3% for subsequent use. With 5% or more down, the fee drops to 1.5% for both use types. With 10% or more down, it drops to 1.25% for both. These purchase-loan rates have been in effect since 2020 and remain current for 2026.
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation, veterans entitled to compensation but receiving retirement or active-duty pay instead, eligible surviving spouses receiving Dependency and Indemnity Compensation, active-duty Purple Heart recipients, and veterans with a pre-discharge disability rating are exempt. If you are exempt, the fee is $0; toggle the exemption switch in this calculator to see the difference.
Should I finance the funding fee or pay it upfront?
Financing the fee raises your loan balance, so you pay interest on it over the full term. For example, a 2.15% fee on a $300,000 loan is $6,450; financed over 30 years at 6.5% it adds about $41 to the monthly payment and roughly $8,200 of extra interest. Paying upfront costs more cash at closing but saves that interest. Use the toggle in this calculator to compare both.
Do VA loans require a down payment or PMI?
No and no. VA loans allow 100% financing, so zero down payment, and they never charge private mortgage insurance regardless of the down payment. The funding fee replaces PMI as the program's insurance cost. Putting 5% or 10% down is optional but lowers the funding fee tier and the amount you borrow.