Property tax and insurance are held at today's amounts; in practice both usually rise over time.
The 2.15% funding fee is $8,600.00. Financed, it raises the loan to $408,600.00 and costs $10,462.60 in interest over the term; the monthly payment is $3,007.49.
Monthly payment
Principal and interest83.7%Property tax12.2%Insurance4.2%
Funding fee on this price, first use
Loan balance
Amortization schedule Rows: 360
Month
Principal + interest
Principal
Interest
Balance
1
$2,515.82
$387.70
$2,128.12
$408,212.30
2
$2,515.82
$389.71
$2,126.11
$407,822.59
3
$2,515.82
$391.74
$2,124.08
$407,430.85
4
$2,515.82
$393.78
$2,122.04
$407,037.06
5
$2,515.82
$395.84
$2,119.98
$406,641.22
6
$2,515.82
$397.90
$2,117.92
$406,243.33
7
$2,515.82
$399.97
$2,115.85
$405,843.36
8
$2,515.82
$402.05
$2,113.77
$405,441.30
9
$2,515.82
$404.15
$2,111.67
$405,037.16
10
$2,515.82
$406.25
$2,109.57
$404,630.91
11
$2,515.82
$408.37
$2,107.45
$404,222.54
12
$2,515.82
$410.49
$2,105.33
$403,812.04
How it's calculated S
Loan before the fee
L=400,000.00−0.00=400,000.00(0.00%down)
Funding fee
F=2.15%×400,000.00=8,600.00
VA table effective April 7, 2023: less than 5% down, first use.
Total loan
T=400,000.00+8,600.00=408,600.00
The fee is financed; on a purchase it is the only closing cost VA lets you add to the loan.
No monthly mortgage insurance is added on a VA loan.
About the VA loan calculator
A VA purchase loan needs no down payment and no monthly mortgage insurance; most borrowers pay a one-time funding fee instead. The fee is a percentage of the loan from VA's table: 2.15% with less than 5% down on first use and 3.3% on later use, falling to 1.5% with 5% down and 1.25% with 10% down. It can be added to the loan, and veterans receiving VA disability compensation, among others, pay nothing.
With the defaults, a 400,000 home bought with nothing down on first use carries a funding fee of 8,600. Financed, it takes the loan to 408,600; principal and interest at 6.25% over 30 years are 2,515.82, or 3,007.49 a month with property tax and insurance.
Veterans with full entitlement have no VA loan limit, as long as they can afford the loan and the appraisal supports the price. With partial entitlement the lender may ask for a down payment, which this calculator does not work out.
How to calculate a VA loan payment and funding fee
Multiply the loan by the VA funding fee rate, add the fee to the loan if you finance it, and work out the payment on the total. With nothing down on first use, 2.15% of a $400,000 loan is $8,600; financed at 6.25% for 30 years, the $408,600 loan costs $2,515.82 a month in principal and interest.
Property tax of 1.1% of the price ($366.67 a month) and $1,500 a year of insurance ($125) bring the total to $3,007.49. VA loans charge no monthly mortgage insurance.
VA funding fee rates in 2026
VA's rates for purchase and construction loans, in effect since April 7, 2023 (VA funding fee):
Less than 5% down: 2.15% on first use, 3.3% after first use.
5% to under 10% down: 1.5%, first or later use.
10% or more down: 1.25%, first or later use.
The rate applies to the loan, not the price, so a down payment lowers the fee twice: a lower rate on a smaller loan. On a $400,000 home, first use:
Down payment (%)
Funding-fee rate (%)
Funding fee
0
2.15
8600.00
5
1.50
5700.00
10
1.25
4500.00
With 5% down the fee is 1.5% of $380,000, and with 10% down 1.25% of $360,000. After first use, 5% down saves even more, cutting the fee from $13,200 to $5,700.
The tier boundaries are exact. A $19,960 down payment is 4.99% of the price, so it still pays 2.15%: $8,170.86 on a $380,040 loan.
Should you finance the VA funding fee?
On a purchase loan the funding fee is the only closing cost VA lets you add to the loan. Financing the $8,600 fee adds $52.95 a month ($2,515.82 against $2,462.87) and $10,462.60 of interest over 30 years.
Paying it in cash keeps the loan at $400,000 but puts the $8,600 into the cash due at closing, on top of the other closing costs. With the fee financed and nothing down, the loan is 102.15% of the price.
Who is exempt from the VA funding fee?
Veterans receiving VA compensation for a service-connected disability, or eligible for it but drawing retirement or active-duty pay instead.
Surviving spouses receiving Dependency and Indemnity Compensation (DIC).
Service members with a proposed or memorandum rating before closing.
Active-duty service members who received a Purple Heart.
The exemption has to be on record: VA confirms it on your Certificate of Eligibility, and otherwise the fee applies. Without the fee, the $400,000 loan costs $2,462.87 a month.
VA loan limits and entitlement
Borrowers with full entitlement have no VA loan limit, as long as they can afford the loan and the appraisal supports the price. The lender still checks income and credit before approving an amount.
With partial entitlement, most lenders want your remaining entitlement and down payment together to cover 25% of the loan (VA loan limits).
Common mistakes
Applying the fee to the price. It is a percentage of the loan before the fee.
Rounding up to a tier. 4.99% down pays the under-5% rate.
Using the purchase table for a refinance. VA's cash-out and interest rate reduction refinance loans can have different fee rules.
Forgetting other closing costs. They come on top of the down payment and any fee paid in cash.
Holding tax and insurance flat. Both usually rise over time, so the full payment will drift up even at a fixed rate.
Checked against: VA funding fee table (2.15%, first use, under 5% down); from the annuity formula on 408,600 at 6.25%/12 over 360 months; fee interest = 497,095.37 − 486,632.77
Later use, nothing down
Home price
400,000
Enter down payment as
Percent of price
Down payment
0%
VA loan use
Used before
Interest rate (per year)
6.25%
Loan term
30 years
Property tax (per year, of home price)
1.1%
Homeowners insurance (per year)
1500
HOA dues (per month)
0
Funding fee rate
3.30%
VA funding fee
13,200.00
Total loan amount
413,200.00
Principal and interest
2,544.14
Checked against: VA funding fee table (3.3% after first use, under 5% down); from the annuity formula
Exactly 5% down on later use
Home price
350,000
Enter down payment as
Percent of price
Down payment
5%
VA loan use
Used before
Interest rate (per year)
6%
Loan term
30 years
Property tax (per year, of home price)
1.1%
Homeowners insurance (per year)
1500
HOA dues (per month)
0
Funding fee rate
1.50%
VA funding fee
4,987.50
Total loan amount
337,487.50
Principal and interest
2,023.41
Checked against: VA funding fee table: '5% or more' is 1.5% for first and later use; 1.5% × 332,500 = 4,987.50; from the annuity formula
10% down on a 15-year loan
Home price
300,000
Enter down payment as
Amount
Down payment
30,000
VA loan use
First use
Interest rate (per year)
5.5%
Loan term
15 years
Property tax (per year, of home price)
1.1%
Homeowners insurance (per year)
1500
HOA dues (per month)
0
Funding fee rate
1.25%
VA funding fee
3,375.00
Total loan amount
273,375.00
Principal and interest
2,233.70
Total monthly payment
2,633.70
Checked against: VA funding fee table (1.25% at 10% or more down); from the annuity formula on 273,375 at 5.5%/12 over 180 months
Questions
How much is the VA funding fee in 2026?
For a purchase loan it is 2.15% of the loan with less than 5% down on first use, and 3.3% on any later use. With 5% or more down it is 1.5%, and with 10% or more 1.25%, whatever the use. These rates have applied since April 7, 2023 (VA). On a 400,000 loan with nothing down, first use costs 8,600 and later use 13,200.
Who is exempt from the VA funding fee?
You pay no fee if you receive VA compensation for a service-connected disability, or are eligible for it but draw retirement or active-duty pay instead. Surviving spouses receiving Dependency and Indemnity Compensation are exempt, as are service members with a proposed or memorandum rating before closing and active-duty members who received a Purple Heart. The exemption saves 8,600 on a 400,000 first-use loan.
Can you roll the VA funding fee into the loan?
Yes. On a purchase loan the funding fee is the only cost you can finance; you can also pay it in cash at closing (VA). Financing the 8,600 fee on a 400,000 loan at 6.25% for 30 years adds 52.95 to the monthly payment and 10,462.60 of interest over the term.
Does a down payment lower the VA funding fee?
Yes, twice: the rate falls and it applies to a smaller loan. On a 400,000 home on first use, nothing down costs 2.15% of 400,000, or 8,600. Putting 5% (20,000) down cuts the rate to 1.5% of 380,000, or 5,700; 10% down gives 1.25% of 360,000, or 4,500. On later use, 5% down cuts the rate from 3.3% to 1.5%.
Do VA loans have PMI or a loan limit?
No PMI or FHA-style mortgage insurance premium is charged on a VA loan. Borrowers with full entitlement have no VA loan limit, as long as they can afford the loan and the appraisal supports the price. With partial entitlement, most lenders want your entitlement and down payment together to cover 25% of the loan (VA).
For planning only. Lenders, tax authorities and markets apply their own rounding, fees and rules; confirm figures with them before you commit.
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