VA Home Loan Calculator
Use our VA Home Loan Calculator to determine your monthly loan payment, LTV ratio, total monthly housing expense and mortgage limit for a zero down payment VA loan. Use our calculator to compare different loan amounts and down payments to understand the VA mortgage and monthly payment that best meet your needs.
How Our VA Home Loan Calculator Works
VA home loans offer many advantages to eligible borrowers including the ability to purchase a home with no money down and attractive mortgage rates. Your VA loan payment is based on many factors including your loan amount, interest rate and mortgage length. Our calculator uses the following information to determine the monthly payment and what price home you can buy with a VA loan:
Type of Military Service and VA Program Usage. This information is used to calculate the VA funding fee you may be required to pay. You can use the VA Program multiple times as long as you restore your entitlement but the funding fee is higher for subsequent uses.
VA Mortgage Amount. This is the VA loan amount you want. The higher your mortgage amount, the higher your monthly payment and other expenses such as property tax and insurance.
Mortgage Rate. The lower your rate, the lower your monthly VA loan payment and the higher your rate, the higher your payment. VA mortgage rates are typically less than the rates for other programs which reduces your monthly payment.
Mortgage Length. Also known as mortgage term, this is the length of your VA mortgage. The longer your mortgage, the lower your payment and the shorter your mortgage, the higher your payment. Most VA applicants choose 30 year loan terms.
Down Payment. This is how much of the property purchase price that you contribute as compared to the component of the price that you borrow. While you are not required to make a down payment to use a VA loan, you can afford to buy more home if you put money down.
County Where the Property is Located. Inputting the property location enables you to understand the VA mortgage limit for your area.
Our VA Home Loan Calculator shows you the following important information:
VA Home Loan Payment. Your monthly mortgage payment includes principal and interest and is calculated based on your mortgage amount, rate and length.
Loan-to-Value (LTV) Ratio. The calculator determines your loan-to-value (LTV) ratio, which is your mortgage amount divided by the estimated property purchase price. Because the VA program enables you to buy a home with no down payment and finance all of the property purchase price, the LTV ratio for a VA loan can be as high as 100%.
VA Mortgage Limit. This is the VA mortgage limit for your county which helps you understand the loan amount you are eligible for. Applicants that make a down payment may be eligible for a mortgage amount that is above the VA loan limit for their county.
Upfront Funding Fee. You may be required to pay a one-time funding fee when your loan closes. The VA funding fee is basically mortgage insurance that protects lenders in the event you default on your loan. The amount of the funding fee depends on your LTV ratio, military service and the number of times you have used your VA entitlement. The funding fee can be included in your loan or added to your closing costs.
Estimated Property Tax and Hazard Insurance. When you own a home, you are required to pay hazard insurance and property tax. Insurance and tax fees depend on the type of property, where the property is located, coverage level and other factors. Although you may pay for property tax and insurance on a semi-annual or annual basis, our calculator shows you the estimated monthly cost.
Estimated Monthly Housing Expense. Our calculator shows you total housing expense including your monthly mortgage payment, property tax and hazard insurance. This figure enables you to understand the total monthly cost of buying a property with a VA home loan. The higher your loan amount and property purchase price, the greater your total monthly housing expense.
Reasons to Get a VA Loan (If You Are Eligible)
Attractive Mortgage Terms
If you are eligible for a VA loan then chances are you have earned it through your service and sacrifice to our country. The good news is that VA loans usually offer borrowers attractive terms including a lower mortgage rate than conventional loans and many other no or low down payment programs. A lower VA mortgage rate helps you keep your monthly payment low and reduces your total interest expense over the course of your loan, which saves you money in the short term and long run. Although most applicants are required to pay a one-time VA funding fee when their mortgage closes, the fee can be added to your loan amount plus other closing costs for a VA loan tend to be lower. Although VA loan terms are favorable for borrowers it is still important to shop multiple lenders to find the mortgage with the lowest interest rate and closing costs. Our VA Home Loan Calculator enables you to compare the monthly payment for loans with different mortgage rates.
Buy a Home With Zero Down Payment
In addition low mortgage rates, another important benefit of the VA program is the ability to buy a home with no money down. This program feature makes homeownership significantly more attainable for applicants and you may also be able to afford more home because you are not required to make a down payment. For example, instead of using $10,000 you may have saved for a down payment, you could use those funds to buy a higher priced home with a VA loan. Alternatively, you could use those funds to pay for your closing costs including the VA funding fee if you do not want to include it in your loan amount. In short, buying a home with zero money down is a tremendous opportunity for eligible VA applicants.
No Monthly Mortgage Insurance
Unlike most other no or low down payment mortgage programs, the VA Mortgage Program does not require borrowers to pay an ongoing mortgage insurance fee along with their monthly loan payment. The FHA and USDA home loan programs require borrowers to pay an ongoing mortgage insurance premium and conventional low down payment programs usually require borrowers to pay private mortgage insurance (PMI) until they have over 20% equity in their homes. Not requiring monthly mortgage insurance can save VA borrowers hundreds of dollars a month and thousands of dollars over their loan so this is another major benefit of the VA Program.
Ability to Exceed VA Mortgage Limits
Similar to other mortgages, the VA Home Loan Program applies loan limits that vary by county and the number of units in the property, up to a maximum of four units. What makes VA mortgage limits different is that borrowers have the ability to exceed the limits if they contribute a down payment. In short, if borrowers are willing to make a down payment that represents 25% of the amount by which their mortgage is greater than the loan limit, then they may be able to qualify for the mortgage. For example, if the VA loan limit in your county is $400,000 but you need a $500,000 loan, then you could qualify for the mortgage if you make a down payment of $25,000 ($500,000 (loan amount) - $400,000 (VA loan limit) = $100,000 x 25% = $25,000 down payment). The ability to qualify for a mortgage amount that is greater than the loan limit is not available through other low down payment programs, which highlights the financing flexibility afforded by the VA Program. Although it is important to understand the VA mortgage limit in your county -- especially if you have limited funds for a down payment -- it is also helpful to know that your loan amount can exceed the limit if you have sufficient funds for a down payment. Use our VA Home Loan Calculator to determine how your loan amount compares to the mortgage limit for your county.
Fewer Borrower Restrictions
Some mortgage programs apply borrower income limits or restrict where a property is located to be eligible for the best loan terms. The VA Program, however, does cap a borrower’s income or apply different qualification guidelines depending on a property’s location. This makes it easier to qualify for a VA loan and expands the housing options available to applicants. You can buy any type of one-to-four unit property with a VA mortgage as long as you occupy the property as your primary residence. Additionally, not applying income limits is helpful for eligible veterans who may have experienced an increase in earnings after they left the military.
You Can Use the VA Program Anywhere
Do you know that you can use the VA home loan program to buy a home anywhere in the United States and its territories? Additionally, although the program applies loan limits, there is no maximum property value which means you can buy a home with a price above the VA mortgage limit as long as you make a down payment. These features mean the VA program can be used by eligible borrowers no matter where your live, even if you want to buy a home in a more expensive area. This also means that the program may be beneficial to you regardless of how much money you make or your financial resources.
More FREEandCLEAR Mortgage Resources
Review our in-depth explanation of the VA Mortgage Program including eligibility requirements, qualification guidelines and property restrictions. Learn if you are eligible for a VA home loan and understand the benefits of the program.
Review updated VA mortgage rates and fees for leading lenders. Compare key loan terms including monthly payment, total upfront costs and APR to find the VA loan that is right for you.
Determine what size VA mortgage you can afford for based on your monthly gross income, debt payments and other factors including if this is your first time using the VA Program. Learn how much home you can buy with a VA mortgage.
Got mortgage questions? We love answering them -- especially the tough ones. Submit your mortgage questions and receive an informative response within 24 hours. This feature is free and completely confidential.
VA Home Loan Requirements: https://benefits.va.gov/WARMS/docs/admin26/handbook/ChapterLendersHanbookChapter3.pdf
VA Home Loan Program: https://www.benefits.va.gov/homeloans/