Question 1

What is a VA loan?

Accepted Answer

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. It allows eligible veterans, active-duty service members, and surviving spouses to buy a home with no down payment and no private mortgage insurance (PMI).

Question 2

What is the VA funding fee?

Accepted Answer

The VA funding fee is a one-time charge on a VA loan that helps offset the cost to taxpayers. The fee ranges from 0.5% to 3.3% of the loan amount depending on down payment, first or subsequent use, and service type. Veterans with service-connected disabilities are exempt.

Question 3

How does a VA loan compare to a conventional mortgage?

Accepted Answer

VA loans typically have lower monthly payments because there is no PMI requirement, even with 0% down. The VA funding fee replaces PMI but is often lower in total cost, especially for first-time use. VA loans also tend to offer competitive interest rates.

VA Loan Calculator

Loan Details

Monthly P&I (Principal & Interest)

Total Monthly

VA Funding Fee

Monthly Savings vs Conventional

Principal vs Interest Over Time

Yearly Amortization Schedule