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VA loans allow $0 down — but more down reduces the funding fee
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Car payments, student loans, credit cards, etc.
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P&I: $2,516 + Tax: $400 + Ins: $125 • No PMI
Where your monthly payment goes — notice: no mortgage insurance
Principal & Interest
$2,516
Property Tax
$400
Insurance
$125
Mortgage Insurance: $0/month
See how VA stacks up
VA saves you $79/month vs FHA and $-18/month vs Conventional
The one-time cost of your VA benefit
The funding fee is a one-time charge that funds the VA loan program. It can be financed into the loan (adding $8,600 to your balance) or paid upfront at closing. Putting more down reduces the fee rate.
0-4.99% down
2.15%
5-9.99% down
1.50%
10%+ down
1.25%
What these numbers mean for you
VA loans require no down payment and no monthly mortgage insurance — saving you $158/month vs a conventional loan with PMI.
The VA funding fee is 2.15% ($8,600), financed into the loan. First-time use rate applies. Putting 5%+ down reduces this fee significantly.
VA saves you $79/month vs FHA ($952/year) — primarily because VA has no monthly mortgage insurance.
Your DTI of 49.2% exceeds the 41% guideline, but VA may approve with sufficient residual income. Your estimated residual income is $1,809/month.
Putting just 5% down ($20,000) would reduce your funding fee from 2.15% to 1.5%, saving $2,600.
Your VA loan on a $400,000 home costs $3,041/month with zero down payment and no monthly mortgage insurance. The 2.15% funding fee ($8,600) is financed into the loan. Compared to FHA, you save $79/month. Compared to conventional with 5% down, you save $-18/month.
Here are the exact formulas behind your numbers. No black boxes — just math.
VA Funding Fee Rate
Funding Fee Amount
Total Loan Amount
Monthly P&I
PMI
Total Monthly Payment
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