Your VA loan payment, with zero down and no PMI.
See the real monthly payment on a VA home loan: principal and interest, taxes and insurance, the VA funding fee rolled into your loan, and the private mortgage insurance you never have to pay.
Your VA loan
Your VA loan at a glance
The numbers over time
Balance and equity
Where each year's money goes
Each bar is one year of payments. Early on almost all of it is interest; the split flips as the balance falls.
Key milestones
Amortization schedule
Yearly totals on the financed loan (base loan plus the VA funding fee). No PMI is ever added.
| Year | Payment | Principal | Interest | Interest to date | Balance |
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VA home loans, explained
How VA Home Loans Work
VA home loans are mortgage loans guaranteed by the U.S. Department of Veterans Affairs, available to eligible service members, veterans, and surviving spouses. The VA guarantee allows lenders to offer loans with no down payment, no private mortgage insurance, and competitive interest rates that are typically 0.25-0.50% lower than conventional loans. These loans can be used to purchase a home, refinance an existing mortgage, or build a new property.
VA Funding Fee by Service Type
The VA funding fee is a one-time charge that helps sustain the VA loan program for future veterans. For first-time use with no down payment, regular military members pay 2.15%, while Reserves and National Guard members also pay 2.15%. Subsequent use increases the fee to 3.3%. Making a down payment of 5% or more reduces the fee significantly. Veterans with service-connected disabilities are exempt from the funding fee entirely, saving thousands of dollars at closing.
VA Loan Benefits: No Down Payment, No PMI
Two of the most significant advantages of VA loans are the zero down payment requirement and the absence of private mortgage insurance (PMI). On a $350,000 home, skipping the typical 20% down payment saves $70,000 in upfront costs, while avoiding PMI saves $150-$300 per month compared to a conventional loan with less than 20% down. These benefits make VA loans one of the most powerful homebuying tools available, allowing veterans to preserve cash for moving expenses, home improvements, or emergency savings.
VA Loan Eligibility Requirements
Eligibility for VA loans requires meeting minimum active-duty service length requirements, which vary based on when and how you served. Generally, 90 consecutive days of active service during wartime or 181 days during peacetime qualifies you. National Guard and Reserve members typically need six years of service. You will need a Certificate of Eligibility (COE) from the VA, which your lender can often obtain electronically. There is no official minimum credit score set by the VA, though most lenders require at least 620.
Common questions
What is the VA funding fee?
The VA funding fee is a one-time charge that helps fund the VA loan program. For first-time use with no down payment, it is 2.15% for regular military and 2.15% for reserves/guard. Veterans with service-connected disabilities are exempt from the fee.
Do VA loans require a down payment?
No. One of the biggest benefits of a VA loan is the ability to purchase a home with zero down payment. This makes homeownership accessible to veterans who may not have significant savings for a traditional down payment.
Do VA loans have PMI?
No. VA loans do not require private mortgage insurance (PMI), regardless of your down payment amount. This saves veterans hundreds of dollars per month compared to conventional loans with less than 20% down.
Who is eligible for a VA home loan?
VA loans are available to active-duty service members, veterans, National Guard and Reserve members, and eligible surviving spouses. You typically need a Certificate of Eligibility (COE) and must meet minimum service requirements.
Estimates for planning only. The VA funding fee, funding-fee exemption, taxes and insurance vary by lender and location. Verify your funding fee, rate and eligibility with your lender and your Certificate of Eligibility before you commit.