CalcStack — free, instant, no signup. The interactive calculator loads automatically.
No PMI — but not free. Know the fee before the closing disclosure does.
The VA loan's trade for zero down and no mortgage insurance is the funding fee: 2.15% of the loan on first use under 5% down, 3.3% on subsequent use — dropping to 1.5% with 5% down. This calculator applies the current VA schedule, checks the exemption (service-connected disability pays nothing), and shows what financing the fee actually costs over 30 years.
Veterans use it before house-hunting: the fee tiers make 5% down worth real money on subsequent use, and the exemption check catches the disability waiver people leave on the table. Lenders embed it to pre-answer the "what is this fee?" call.
Veterans receiving VA compensation for a service-connected disability (any rating), those eligible for compensation but taking retirement pay instead, surviving spouses receiving DIC, and active-duty Purple Heart recipients. If your disability claim is approved with an effective date before closing, you can claim a full refund of a fee already paid.
Often yes on subsequent use: the fee falls from 3.3% to 1.5%, saving $7,200 on a $400,000 purchase — an instant 144% return on the $20,000 down payment if you count avoided fee. On first use the drop is 2.15% to 1.5%, saving $2,600. The funding-fee tiers make a small down payment unusually powerful for repeat VA users.
Financing adds the fee to the loan — on $8,600 at 6.5% over 30 years, about $54/month and roughly $11,000 in total payments. Paying cash avoids that, but the VA loan's real advantage is preserving liquidity. If cash is tight, financing is fine; if you have it, compare against what the cash earns elsewhere.