VA Loan

Mortgage Payment Calculator / « Mortgage Glossary / VA Loan

A VA loan is a mortgage partially guaranteed by the U.S. Department of Veterans Affairs, available to eligible active-duty service members, veterans, certain National Guard and Reserve members, and some surviving spouses.

Its benefits are hard to beat for those who qualify: no down payment on most purchases, no monthly mortgage insurance (unlike FHA or low-down-payment conventional loans), competitive interest rates, and limits on what fees lenders may charge.

Instead of insurance there is a one-time funding fee — typically 1.25-3.3% of the loan amount depending on the down payment and whether it's a first use — which can be rolled into the loan. Borrowers receiving VA disability compensation are usually exempt. Eligibility is documented with a Certificate of Eligibility (COE) from the VA.

Zero down means starting with almost no home equity, so the full monthly PITI payment deserves a careful look — model it with our mortgage payment calculator, and compare loan types in Conventional vs FHA vs VA loans.

Related terms: FHA Loan, Conventional Loan, Down Payment.