Financial Planning
VA Home Loans Guide
2026Zero down-payment mortgages for service members, veterans, and eligible spouses — calculator, funding fees, and the full 8-step process.
Your biggest earned benefit
$0 down, no PMI, competitive rates — for life.
The VA home loan is a guaranty (not a direct loan) from the VA that lets you buy with no down payment and no monthly PMI. Use it as many times as you qualify. Funding fee is waived entirely if you have a service-connected disability rating.
Why VA Loans?
Buy with $0 down. No loan limits since 2020 (Blue Water Navy Act).
Save $100-$200/month. No private mortgage insurance required at any LTV.
Typically 0.5-1% below conventional. Government guarantee reduces lender risk.
Pay off early or refinance anytime. No fees for extra principal payments.
Use multiple times. Entitlement restores after payoff. Can have 2 VA loans.
10%+ VA disability, Purple Heart, or surviving spouse w/ DIC = $0 fee.
VA Loan Calculator
Your Estimated Monthly Payment
$2,908/mo
Principal & Interest
$2,450
Property Tax
$333
Home Insurance
$125
PMI
$0
Always $0 with VA
Loan Breakdown
Loan Details
Over 30 Years
VA Loan vs Conventional
$2,908/mo
$3,137/mo
VA Saves You
vs conventional with 3% down + PMI
$229/mo
$94,438 total over 30 years
Amortization Schedule
| Year | Balance | Principal Paid | Interest Paid | Equity |
|---|---|---|---|---|
| Year 1 | $403,582 | $5,018 | $24,380 | 1% |
| Year 3 | $392,600 | $16,000 | $72,191 | 4% |
| Year 5 | $380,220 | $28,380 | $118,606 | 7% |
| Year 10 | $341,940 | $66,660 | $227,311 | 16% |
| Year 15 | $290,306 | $118,294 | $322,663 | 29% |
| Year 20 | $220,659 | $187,941 | $400,002 | 46% |
| Year 25 | $126,715 | $281,885 | $453,044 | 69% |
| Year 30 | $0 | $408,600 | $473,315 | 100% |
Historical VA vs Conventional Rates
Average 30-year fixed rates by year. VA rates are consistently 0.3–0.5% lower than conventional.
Sources: VA.gov, Freddie Mac PMMS. 2026 rates are year-to-date averages. Rates shown are approximate annual averages and vary by lender, credit score, and market conditions.
| Loan Type | First Use | Subsequent |
|---|---|---|
| Purchase — Less than 5% down | 2.15% | 3.30% |
| Purchase — 5% to 9.99% down | 1.50% | 1.50% |
| Purchase — 10% or more down | 1.25% | 1.25% |
| IRRRL (Streamline Refinance) | 0.50% | 0.50% |
| Cash-Out Refinance | 2.15% | 3.30% |
| Native American Direct Loan | 1.25% | 1.25% |
Exempt from funding fee: Veterans with 10%+ VA disability rating, active-duty Purple Heart recipients, surviving spouses receiving DIC, and veterans eligible for compensation but receiving retirement pay. The funding fee can be financed into the loan and is tax-deductible as mortgage interest.
VA Loan Program Statistics
528,343
Loans Guaranteed FY2025
+26.8% year-over-year
$373K
Average Loan Amount
FY2024 data
74.1%
Zero-Down Purchases
No down payment used
97.6%
Default Resolution Rate
VA helps avoid foreclosure
Source: VA Lender Statistics (benefits.va.gov/HOMELOANS/Lender_Statistics.asp)
Ready to Use Your VA Benefit?
Start by checking your eligibility and getting your Certificate of Eligibility. Then shop at least 3 VA-approved lenders.
Check Eligibility at VA.govThis calculator provides estimates based on the inputs provided. Actual rates, terms, and monthly payments vary by lender, credit profile, and market conditions. This is not a loan offer or commitment. Always shop multiple VA-approved lenders and get official Loan Estimates before making decisions. Source: 38 U.S.C. Chapter 37.
About this entitlement
What you need to know — straight from the regulation
What a VA home loan is
The VA Home Loan Guaranty is a benefit administered by the Department of Veterans Affairs under Chapter 37 of Title 38 of the United States Code (38 U.S.C. Ch. 37). The VA does not make loans; it guarantees a portion of loans made by private lenders to eligible veterans, active-duty service members, Reserve/Guard members, and certain surviving spouses, which allows lenders to offer favorable terms — including no down payment and no private mortgage insurance.
Detailed program rules are implemented in 38 CFR Part 36 and the VA Lenders Handbook (M26-7).
38 U.S.C. Chapter 37 · 38 CFR Part 36 · VA Lenders Handbook (M26-7)
Funding fee
Most VA loans require a one-time funding fee paid to the VA at closing. The fee percentage depends on down-payment amount, whether it is a first-time or subsequent use of the entitlement, and loan type (purchase, refinance, IRRRL, cash-out). Current fee schedules are published by the VA; veterans with a service-connected disability rating are generally exempt from the funding fee.
VA Funding Fee schedule · 38 CFR Part 36
Entitlement and bonus entitlement
Each eligible veteran has a basic entitlement of $36,000 toward the loan guaranty, plus an additional "bonus" or "Tier 2" entitlement enacted by the Blue Water Navy Vietnam Veterans Act of 2019 (Public Law 116-23). This eliminated the VA loan limit for veterans with full entitlement, but county conforming limits still apply when entitlement is partially used elsewhere. Entitlement can be restored (for example, after paying off a prior VA loan) and used more than once.
38 U.S.C. § 3703 · Public Law 116-23 (Blue Water Navy Act)
Source & references
- Primary source
- VA.gov; 38 U.S.C. Chapter 37; 38 CFR Part 36; VA Lenders Handbook (M26-7); Freddie Mac PMMS (historical rates) — view official publication
- Regulatory reference
- 38 U.S.C. Chapter 37 (§§ 3701–3774) · 38 CFR Part 36 · Public Law 116-23
- Effective date
- Rates and funding fees current as of APR 2026
- VA.gov — Home Loans
- https://www.va.gov/housing-assistance/home-loans/
Military Toolkit is not affiliated with the Department of Defense, DFAS, DTMO, the Department of Veterans Affairs, or any government agency. Rates and rules on this page are pulled directly from the publications cited above. Always verify with your finance office, TMO, or the official rate page before making financial or planning decisions.
Keep going
Plan the rest of your housing
REF: VA Home Loan Guaranty Program, effective Funding fees per APR 2023 schedule; rates as of APR 2026
VA.gov; 38 U.S.C. Chapter 37; Freddie Mac PMMS; VA Lender Statistics
Results are estimates. Always verify with your finance office.