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. The funding fee is waived entirely if you receive VA compensation for a service-connected disability.
Why VA Loans?
Buy with $0 down. No loan limits since 2020 (Blue Water Navy Act).
No private mortgage insurance at any LTV. Conventional PMI at 0.7%/year on a $400,000 loan runs about $233/month.
Historically below conventional — the rate series on this page shows a 0.15-0.5 point gap. 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
$2,908.10/month
Principal & Interest
$2,449.76
Property Tax
$333.33
Home Insurance
$125.00
PMI
$0.00
Always $0 with VA
Loan Breakdown
Loan Details
Over 30 Years
VA Loan vs Conventional
$2,908.10/month
$3,137.09/month
VA Saves You
vs conventional with 3% down + PMI (PMI drops off at month 144)
$228.99/month
while PMI applies · $45,549.77 total cash outlay over 30 years
Conventional PMI is modeled only until it must be cancelled: the Homeowners Protection Act of 1998 (12 U.S.C. §§ 4901(18), 4902(b)–(c)) requires automatic termination the month the scheduled balance first reaches 78% of original value, and in no case later than the midpoint of the amortization period. At these inputs that is month 144 — $32,592.00 of PMI in total, not $81,480.00. The lifetime figure compares total cash outlay (all payments plus down payment); both borrowers own the home outright at the end of the term.
Amortization Schedule
| Year | Balance | Principal Paid | Interest Paid | Equity |
|---|---|---|---|---|
| Year 1 | $403,582.34 | $5,017.66 | $24,379.51 | 1% |
| Year 3 | $392,599.51 | $16,000.49 | $72,190.99 | 4% |
| Year 5 | $380,220.10 | $28,379.90 | $118,605.91 | 7% |
| Year 10 | $341,939.87 | $66,660.13 | $227,311.49 | 16% |
| Year 15 | $290,305.58 | $118,294.42 | $322,663.00 | 29% |
| Year 20 | $220,658.65 | $187,941.35 | $400,001.88 | 46% |
| Year 25 | $126,715.39 | $281,884.61 | $453,044.42 | 69% |
| Year 30 | $0.00 | $408,600.00 | $473,314.84 | 100% |
Historical VA vs Conventional Rates
Average 30-year fixed rates by year. The VA-to-conventional gap in the series below runs 0.15–0.50 percentage points.
Conventional figures are Freddie Mac PMMS 30-year fixed annual averages. Neither the VA nor Freddie Mac publishes an official historical VA rate series, so the VA column is an approximate estimate of the typical VA discount to those conventional averages — illustrative, not an official figure. 2026 is year-to-date. Actual rates 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 — Purchase | 1.25% | 1.25% |
| Native American Direct Loan — Refinance | 0.50% | 0.50% |
Exempt from funding fee (38 U.S.C. § 3729(c)): Veterans receiving VA compensation for a service-connected disability (10%+ rating), active-duty Purple Heart recipients, surviving spouses receiving DIC, and veterans eligible for compensation but receiving retirement pay instead. The funding fee can be paid in cash at closing or financed into the loan.
VA Loan Program Facts
~90%
Bought With $0 Down
VA: "nearly 90% of VA-backed loans are made with no down payment"
$36,000
Basic Entitlement
38 U.S.C. § 3703 — guaranty on loans up to $144,000
1944
Program Established
Servicemen's Readjustment Act (the original GI Bill)
$0
Monthly PMI
No private mortgage insurance at any LTV
Sources: VA.gov Housing Assistance (va.gov/housing-assistance/home-loans); 38 U.S.C. § 3703. Loan-volume data files: 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 receiving VA compensation for a service-connected disability are exempt from the funding fee under 38 U.S.C. § 3729(c).
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 (38 U.S.C. § 3703), plus additional "bonus" entitlement tied to the conforming loan limit for loans over $144,000. The Blue Water Navy Vietnam Veterans Act of 2019 (Public Law 116-23) removed the VA loan limit for veterans with full entitlement effective 2020; 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
Results are estimates. Always verify with your finance office.