$0 down. No PMI. What will your VA loan cost?
Type a home price and tap your situation for your funding fee, loan amount and payment.
Used a VA loan before?
Down payment?
- VA.gov fee table
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The simple version
Should you buy at your next base?
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Break down the numbers
1. Are you eligible?
- On active duty: 90 continuous days of service.
- Veterans (Aug 2, 1990 to now): 24 continuous months, or the full period you were ordered to (at least 90 days), or less with a service-connected disability discharge.
- Guard: 90 days of non-training Title 10 duty, or 90 days including 30 consecutive under certain Title 32 orders, or 6 creditable years.
- Reserve: 90 days of non-training active duty, or 6 creditable years in the Selected Reserve.
- Surviving spouses: if you receive or are eligible for certain DIC, or your spouse is MIA/POW.
Get your free Certificate of Eligibility (COE) on VA.gov, or your lender can pull it. Active duty usually needs a statement of service signed by your command.
2. The funding fee
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
| Other VA loans | Funding fee |
|---|---|
| IRRRL (rate-lowering refinance) | 0.5% |
| Cash-out refinance | 2.15% first use, 3.3% after |
| Taking over (assuming) a VA loan | 0.5% |
Effective April 7, 2023, same for active duty, veterans, Guard and Reserve. Source: VA.gov, checked Oct 17, 2026.
No funding fee if you…
- get VA disability compensation (or are eligible but get retirement or active-duty pay instead),
- have a proposed or memorandum rating before closing (pre-discharge claim),
- are a surviving spouse receiving DIC, or
- are on active duty and show proof of a Purple Heart by closing.
You can finance the fee into the loan. If a disability rating is later made retroactive to before closing, ask the VA for a refund.
3. $0 down and no PMI
VA loans don't charge monthly mortgage insurance. With full entitlement there's no VA loan limit; your lender decides how much you can borrow. VA has no minimum credit score, but most lenders want about 620+.
4. Closing costs and the 4% rule
Closing costs usually run 2–5% of the price: lender fees, appraisal, title, prepaid taxes and insurance. Only the funding fee can be rolled into a purchase loan.
The seller can pay them. VA doesn't limit seller credits for normal closing costs. Separately, VA caps seller concessions at 4% of the home's reasonable value.
Concessions are extras: paying your funding fee, prepaying your taxes and insurance, paying off a debt, or extra discount points. In a slow market (many days on market), asking for both is normal.
5. Can you afford it? (VA's two checks)
Debt-to-income: VA's guideline is 41% of gross income (BAH counts). Higher can still work with strong residual income.
Residual income: money left each month after the house payment, taxes, debts and estimated upkeep.
| Family size | Northeast | Midwest | South | West |
|---|---|---|---|---|
| 1 | $450 | $441 | $441 | $491 |
| 2 | $755 | $738 | $738 | $823 |
| 3 | $909 | $889 | $889 | $990 |
| 4 | $1,025 | $1,003 | $1,003 | $1,117 |
| 5 | $1,062 | $1,039 | $1,039 | $1,158 |
Monthly residual income guideline for loans of $80,000+. Over 5 people: add $80 each. Source: VA Lenders Handbook (Pamphlet 26-7), chapter 4.
Regions: Northeast = CT, ME, MA, NH, NJ, NY, PA, RI, VT. Midwest = IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI.
South = AL, AR, DE, DC, FL, GA, KY, LA, MD, MS, NC, OK, PR, SC, TN, TX, VA, WV. West = AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY.
6. Entitlement, explained
Entitlement is the VA's promise to your lender: it covers 25% of the loan. Full entitlement (never used, or restored) means no VA loan limit.
Remaining (second-tier or “bonus”) entitlement: if a VA loan is still open on another home, VA's math is (2026 county one-unit limit × 25%) − entitlement already used. Multiply what's left by 4 for the most you can borrow with $0 down.
Above that, put down 25% of the difference.
The county loan limit only matters here, with reduced entitlement. It's the FHFA conforming limit for the county you're buying in. Each base page lists it.
Example from VA: limit $900,000 × 25% = $225,000; minus $50,000 used = $175,000 left; × 4 = $700,000 with $0 down.
Worked example
An E-6 family buys near Fort Bliss
- Home price
- $233,000 (typical El Paso County home, Zillow, Sept 2026)
- Down payment
- $0
- Funding fee (2.15%, first use)
- $5,010, rolled into the loan
- Loan
- $238,010
- Principal + interest
- $1,648/mo at 7.4% (30-yr)
- Property tax + insurance
- $494/mo (est.)
- PMI
- $0
- Monthly payment
- $2,142/mo vs. $2,148 E-6 BAH with dependents
- Closing costs
- ~$5,825 (about 2.5%). The seller can pay all normal closing costs; that doesn't count toward VA's 4% cap.
- Seller concessions cap (4%)
- up to $9,320 more for extras, like paying the funding fee ($5,010) or paying off a debt
- With a VA disability rating
- No funding fee: loan $233,000, saves about $5,010 plus interest
Then they PCS to Camp Pendleton and keep the El Paso house as a rental
- Entitlement used on El Paso
- ~$58,250 (25% of the loan)
- 2026 San Diego County limit
- $1,104,000
- Remaining (second-tier) entitlement
- $1,104,000 × 25% − $58,250 = $217,750
- Max with $0 down
- $217,750 × 4 = $871,000
- Typical San Diego County home
- $927,000, so they'd need about $14,000 down (25% of the amount over $871,000)
- Funding fee on the 2nd loan
- 3.3% with under 5% down (subsequent use), unless exempt
Estimates for illustration. Your COE shows your exact entitlement. The county limit matters only because the first VA loan is still open (reduced entitlement); with full entitlement there's no VA loan limit.
7. Using it twice (or more)
- Sold the home and paid off the loan: restore your full entitlement.
- Paid it off but kept the home: one-time restoration.
- Still have the loan: use remaining entitlement (above). Your funding fee is 3.3% with under 5% down.
- Someone assumed your loan: your entitlement stays tied up unless the buyer is an eligible veteran who substitutes their own entitlement.
8. The occupancy rule
You must certify you'll live in the home as your primary residence, generally within 60 days of closing. If you're on active duty and can't because of your service (a deployment, say), your spouse, or in some cases a dependent child, can meet the rule.
You can't use a VA loan for a pure investment property or a home overseas.
9. Renting it out after you PCS
Once you've lived there, you can move on PCS orders and rent it out. Run the numbers first:
- Rent covers the payment, plus 8–10% for a property manager and a leasing fee (often half to a full month's rent)
- A month or so of vacancy each year
- Repairs, about 1% of the home's value a year
- Landlord insurance (it replaces homeowners insurance)
- Taxes on rental income, and depreciation (ask a tax pro)
- Selling later: the home-sale tax break needs 2 of the last 5 years living there, and military on extended duty can pause that 5-year clock for up to 10 years (IRS Pub. 523)
10. IRRRL: lowering your rate later
The Interest Rate Reduction Refinance Loan replaces your VA loan with a new one at a lower rate. Funding fee: 0.5%.
You only have to certify that you live there now or used to, so it works even after you PCS and rent the home out. Lenders usually need little paperwork.
11. Cash-out refinance
Replace any mortgage (VA or not) with a VA loan and take cash out of your equity, or refinance a non-VA loan into a VA one. You must live in the home. Funding fee: 2.15% first use, 3.3% after. The lender orders an appraisal.
12. Assumable VA loans
A VA loan can be taken over by a buyer at its existing rate, with the lender's approval (funding fee 0.5%). When rates are high, a low-rate VA loan makes your home easier to sell at PCS.
Get a release of liability, and remember: unless the buyer is a veteran who substitutes their entitlement, yours stays tied up until the loan is paid off.
13. House hacking
A VA loan can buy a home with up to 4 units if you live in one. Tenants in the other units help pay the mortgage.
Lenders may count part of that rent as income and may want cash reserves. 2026 FHFA limits for 2–4 units matter only with reduced entitlement.
What if I put money down?
A VA loan doesn't require a down payment, but you can make one. Putting money down does three things: it shrinks the loan, it drops the funding fee rate at the 5% and 10% marks, and it lowers your monthly payment.
Under VA rules, the fee is a percent of the loan amount, not the price, and it can be rolled into the loan. (Source: VA.gov funding fee chart, rates effective April 7, 2023.)
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
No funding fee at all if you get VA disability compensation (or are eligible for it), get DIC as a surviving spouse, have a pre-discharge proposed/memorandum rating before closing, or are active duty with a Purple Heart (VA.gov).
Worked example: a $400,000 home at 7.4% (Freddie Mac 30-yr average, 2026-10-15)
First time using your VA loan
| Down | Cash down | Funding fee | Loan (fee financed) | Principal + interest | vs. $0 down | Total paid, 30 yrs |
|---|---|---|---|---|---|---|
| 0% | $0 | 2.15% = $8,600 | $408,600 | $2,829/mo | - | $1,018,463 |
| 5% | $20,000 | 1.5% = $5,700 | $385,700 | $2,671/mo | −$159/mo | $981,383 |
| 10% | $40,000 | 1.25% = $4,500 | $364,500 | $2,524/mo | −$305/mo | $948,541 |
| 20% | $80,000 | 1.25% = $4,000 | $324,000 | $2,243/mo | −$586/mo | $887,592 |
Second (subsequent) use
| Down | Cash down | Funding fee | Loan (fee financed) | Principal + interest | vs. $0 down | Total paid, 30 yrs |
|---|---|---|---|---|---|---|
| 0% | $0 | 3.3% = $13,200 | $413,200 | $2,861/mo | - | $1,029,929 |
| 5% | $20,000 | 1.5% = $5,700 | $385,700 | $2,671/mo | −$190/mo | $981,383 |
| 10% | $40,000 | 1.25% = $4,500 | $364,500 | $2,524/mo | −$337/mo | $948,541 |
| 20% | $80,000 | 1.25% = $4,000 | $324,000 | $2,243/mo | −$618/mo | $887,592 |
Fee financed into the loan in every row. Principal and interest only; taxes, insurance and any HOA come on top.
Closing costs (usually 2–5%) are separate and the same either way; only the funding fee can be financed. Total paid = 360 payments + cash down.
Estimates for planning, not a loan offer.
Cash you need at closing
Cash down + closing costs not covered by the seller. Example at 5% down: $20,000 plus closing costs.
At $0 down: just closing costs, and the seller can pay those (VA caps seller concessions at 4% of value, but not normal closing-cost credits).
Who a down payment helps most
- Second-time users. Going from 0% to 5% down cuts the fee from 3.3% to 1.5%. On this example that saves $7,500 in fee alone, before the smaller loan.
- Pricey areas and partial entitlement. If you still have a VA loan out (or lost entitlement), VA guarantees only up to your remaining entitlement against the county limit. Above that, lenders usually want 25% of the difference down. See VA loan limits.
- Tight debt-to-income. A smaller payment can help you qualify.
- Planning to sell soon. More equity means less chance of owing money at sale after selling costs.
When $0 down is still the smarter move
- You're fee-exempt (VA disability rating). The fee break doesn't apply, so a down payment only lowers the payment.
- Short tour. Cash tied up in a house you sell in 2–3 years can be eaten by ~6–8% selling costs.
- No emergency fund yet. Keep 3–6 months of expenses plus PCS costs liquid first. PCS moves often need cash before reimbursement.
- You'll rent it out after PCS. Cash on hand covers vacancies and repairs.
- Higher-interest debt. Paying off a card at 20%+ beats saving a fraction of a percent on the fee.
- First use with less than 5% saved. 1–4% down doesn't change the fee rate (still 2.15%); it only trims the loan.
FAQ
What is the VA funding fee in 2026?
For a purchase: 2.15% with less than 5% down on first use, 3.3% after first use, 1.5% with 5%+ down, 1.25% with 10%+ down. IRRRL and loan assumptions: 0.5%. These rates have applied since April 7, 2023.
Who doesn't pay the VA funding fee?
Anyone receiving (or eligible for) VA disability compensation, surviving spouses receiving DIC, service members with a pre-discharge rating before closing, and active-duty Purple Heart recipients.
Is there a VA loan limit?
Not with full entitlement. With remaining (reduced) entitlement, VA uses the county's FHFA one-unit limit to work out how much you can borrow with $0 down.
Can a seller pay my VA closing costs?
Yes. VA doesn't limit seller credits for normal closing costs, and allows up to 4% of the home's value in extra concessions, like paying your funding fee.
Can I use a VA loan twice?
Yes. Restore entitlement after you sell and pay off the loan, or use remaining entitlement while you still own the first home.
Can I rent out my VA loan home?
Yes, after you've lived in it. You must intend to live there when you buy (generally within 60 days), but you can rent it out after you PCS.
Can someone take over my VA loan?
Yes. VA loans are assumable with lender approval. Your entitlement stays tied up unless the buyer is an eligible veteran who substitutes theirs.
Does a VA loan need PMI?
No. VA loans don't have monthly mortgage insurance.
Sources
- DTMO: 2026 BAH rates (ASCII download, incl. TX270 update eff. May 16, 2026) — effective Jan 1, 2026
- Department of War: 2026 BAH rates release (Dec. 11, 2025) — average +4.2%, rate protection
- HUD: FY2026 Fair Market Rents — 40th-percentile gross rent incl. utilities, effective Oct 1, 2025
- Zillow Research: ZHVI and ZORI (county) — Sept 2026, 1-year change vs. Sept 2025
- Realtor.com Residential Data: county core metrics — Sept 2026: median list price, days on market, price cuts, listings
- FRED (St. Louis Fed): Realtor.com county series, e.g. El Paso County TX days on market
- Freddie Mac: Primary Mortgage Market Survey — 30-yr fixed 7.4%, week of 2026-10-15
- U.S. Census: ACS 2020-2024 5-year, tables B25103 and B25077 — property tax ÷ home value
- FHFA: 2026 conforming loan limits
- 10 U.S.C. § 619: officer time-in-grade minimums — O-2: 18 months, O-3: 2 years
- MyNavyHR: officer promotion flow points (DOPMA) — O-2 ~2 yrs, O-3 ~4, O-4 9–11, O-5 15–17, O-6 21–23
- Army AR 600-8-19: enlisted promotions — PV2 6 mo, PFC 12 mo, SPC 24 mo time in service
- Air Force AFI 36-2502: airman promotions — Amn 6 mo, A1C 10 mo TIG, SrA 36 mo TIS/20 mo TIG or 28 mo TIG
- MyNavyHR: apprentice advancement (E-1 to E-4) — 9 / 18 / 30 months time in service
- DTMO: 2026 dislocation allowance rates — effective Jan 1, 2026
- DTMO: TLE increased to 21 days (CONUS)
- DFAS: TLE limits — capped at $290/day
- Military OneSource: personally procured moves (PPM)
- DTMO: Overseas Housing Allowance
- U.S. DOJ: Servicemembers Civil Relief Act — lease termination on PCS / 90+ day deployment
- IRS Publication 523: selling your home — 2-of-5-year rule, military suspension up to 10 years
- VA: funding fee and closing costs — rates effective April 7, 2023; 4% concession cap
- VA: entitlement and loan limits
- VA: eligibility
- VA: IRRRL
- VA: cash-out refinance
- VA Lenders Handbook (Pamphlet 26-7) — residual income (ch. 4), occupancy, assumptions
Boxes marked “Partner offer” are placeholders and aren't live yet. When they go live they'll be labeled, and they won't change our rankings or what we say (disclosure). Written by The MilUnlocked Team. Not financial, tax or legal advice.