VA Home Loan Mortgage Calculator
This VA home loan mortgage calculator can show the benefits of being approved for a VA loan.
Easily determine your payment including the VA funding fee, a cost that most calculators leave out.
VA mortgage eligibility basics
Eligibility for a VA home loan is based on four primary elements.
Length of service
First, eligibility is based on your—or your spouse’s—military service. These requirements are set by the Department of Veterans Affairs (VA) and are designed to benefit active-duty/ veteran service members and eligible surviving spouses.
You can apply for a VA loan if:
- You currently serve on active duty and have served for 90 days continuously.
- You are a veteran who can meet the length of service requirements (generally, this means 90 days of wartime service or 181 days during peacetime).
- You have completed 90 days of Selected Reserve or National Guard active duty or six creditable years in the same service.
- You’re the surviving unmarried spouse of a veteran killed or missing in the line of duty.
Also, there are some cases where you might qualify even if you don’t meet the length of service requirements. If you have any military service history, it’s worth checking your eligibility.
Finally, you may not be eligible if you received a discharge that was other than honorable. But it is possible to apply to the VA to upgrade your discharge status.
Credit score for VA loans
While the VA itself doesn’t set a minimum required credit score, VA mortgage lenders do.
This minimum will vary from lender to lender, but a typical credit score minimum will likely be in the low-to-mid 600s. Of course, VA mortgage lenders, like any conventional lender, will also look at your credit report to check your history of making timely payments.
DTI or debt-to-income ratio
Debt-to-income ratio, or DTI, will be a deciding factor for whether your home loan is approved. DTI provides the lender with an assessment of your ability to make monthly mortgage payments.
DTI shows your proposed housing payments plus monthly debt payments (car loan, credit cards, etc.), versus before-tax income.
Generally, an ideal DTI for a VA loan is 41%. However, the ratio maximum can be higher depending on the analysis from a computerized underwriting system that lenders use.
If you’re having a hard time getting approved, try bringing down your DTI using a VA ARM loan, which comes with a lower rate for the first few years, helping you qualify easier.
A downpayment is not required for a VA loan, but some borrowers may decide to include one in their application.
Why? For one, it will lower your monthly payment.
But potentially more important, making a small down payment can push your application from “denied” to “approved.”
Just a 1-2% down payment can help approve a loan file if it’s right on the edge of qualifying.Start your zero-down VA loan.
VA funding fees for 2023
What is a VA funding fee?
This VA funding fee is a one-time charge to the borrower on a VA loan and is included in the final results when you use the above VA home loan mortgage calculator. The fee is there to offset the cost to the U.S. taxpayer because the VA home loan program does not require a downpayment or monthly mortgage insurance.
Does everyone have to pay the fee?
Most VA borrowers will have to pay the fee, but those with 10% or greater disability are exempt.
The best way to discover if you are exempt from the funding fee is to check your certificate of eligibility (COE). You can contact a lender, which can pull your COE in minutes, or contact the Department of Veterans Affairs directly.
Learn more about VA loans.
How is a VA funding fee calculated?
The VA funding fee is based on your down payment and whether you’ve used a VA loan before.
Here is a basic breakdown of how the VA funding fee is calculated:
|Down payment||Funding fee (based on loan amount)|
|First use||Less than 5%||2.3%|
|You’ve used a VA loan before||Less than 5%||3.6%|
Refinance funding fees
|Cash-out refinance (any down payment)|
|First use of any VA loan||2.3%|
|You’ve used a VA loan before||3.6%|
|VA IRRRL Streamline Refinance|
|First or subsequent use||0.5%|
VA loan limits
Technically, VA does not impose limits. However, most lenders will cap zero-down loans at $1-2 million. If your loan is larger, you will have to make a 25% down payment on any amount over the lender’s limit.
Bottom line—VA loans
VA loans for purchasing a home can be one of the best mortgage products on the real estate market. With zero down, low rates, and lenient credit guidelines, a VA loan could make you a homeowner sooner than you think.
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