Calculate VA loan payments with funding fees for veterans, active duty service members, and eligible surviving spouses. Compare with conventional loans and understand all benefits.
VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs, designed to help veterans, active duty service members, National Guard and Reserve members, and eligible surviving spouses achieve homeownership. These loans offer significant advantages over conventional mortgages, making them one of the most valuable military benefits.
The VA doesn't actually lend money directly but guarantees a portion of the loan to approved lenders, reducing their risk and enabling them to offer better terms to borrowers. This guarantee allows veterans to purchase homes with little to no down payment and without the burden of private mortgage insurance.
| Service Category | Minimum Service Requirement | Discharge Status |
|---|---|---|
| WWII Veterans | 90 days active duty | Honorable |
| Korea War Veterans | 90 days active duty | Honorable |
| Vietnam Veterans | 90 days active duty | Honorable |
| Gulf War Veterans | 90 days active duty | Honorable |
| Post-9/11 Veterans | 90 aggregate days active duty | Honorable |
| Current Active Duty | 90 continuous days service | Not applicable |
| National Guard/Reserve | 6 years service | Honorable |
| Surviving Spouses | Spouse met eligibility | Not remarried or remarried after age 57 |
| Down Payment | First Time Use | Subsequent Use | Disabled Veterans |
|---|---|---|---|
| 0% (No Down Payment) | 2.15% | 3.30% | 0% |
| 5% - 9.99% | 1.50% | 1.50% | 0% |
| 10% or more | 1.25% | 1.25% | 0% |
| Feature | VA Loan | Conventional Loan |
|---|---|---|
| Down Payment | 0% (optional) | 3-20% |
| Mortgage Insurance | None | Required if < 20% down |
| Funding Fee | 0-3.3% (one-time) | None |
| Credit Score | No VA minimum | 620+ typically |
| Interest Rates | Competitive/Lower | Market rates |
| Loan Limits | No limit with full entitlement | Conforming limits apply |
| Occupancy | Primary residence only | Primary, secondary, investment |
Primary Residence Only: Cannot be used for investment properties or vacation homes
Property Standards: Home must meet VA minimum property requirements
Funding Fee: One-time fee unless exempt due to disability
Lender Approval: Must use VA-approved lender
Required Document: Proves eligibility for VA loan benefits
How to Obtain: Apply through VA website, by mail, or through lender
Processing Time: Instant online for most veterans, up to 30 days by mail
Required Information: Military service details, discharge status, Social Security number
Allows loans up to $144,000 with no down payment
Combined with basic entitlement allows larger loans
25% of conforming loan limit in your county
Residual Income: VA focuses on residual income rather than strict DTI ratios
Guideline DTI: Generally prefer 41% or lower debt-to-income ratio
Compensating Factors: High residual income, excellent credit, cash reserves can offset higher DTI
| Family Size | Northeast | Midwest | South | West |
|---|---|---|---|---|
| 1 person | $450 | $441 | $441 | $491 |
| 2 people | $755 | $738 | $738 | $823 |
| 3 people | $901 | $889 | $889 | $990 |
| 4 people | $1,025 | $1,003 | $1,003 | $1,117 |
| 5+ people | $1,062 | $1,039 | $1,039 | $1,158 |
VA Appraisal: Required by VA-approved appraiser
Minimum Property Requirements (MPRs): Home must be safe, sound, and sanitary
Move-in Ready: Property must be habitable without major repairs
Well and Septic: If applicable, must be tested and approved
| Allowable Costs (Veteran Pays) | Non-Allowable Costs (Cannot Pay) |
|---|---|
|
• VA funding fee • Appraisal fee • Credit report • Title insurance • Recording fees • Survey fee |
• Real estate commissions • Attorney fees for seller • Document preparation by seller • Escrow fees over 1% • Processing/underwriting fees |
Maximum: Up to 4% of home price for closing costs
Allowable Uses: Closing costs, prepaid items, discount points, VA funding fee
Not Allowed: Down payment, cash back to borrower
Assumable by Anyone: Veteran or non-veteran can assume loan
Lender Approval Required: Assumer must qualify with lender
Entitlement Release: Original veteran must request release of liability
Funding Fee: 0.50% of loan balance for assumptions