My VA mortgage loan estimator can assist you in calculating your specific costs when using your VA eligibility to purchase a home.

Your VA mortgage includes charges in the following categories:

• Funding fee: This VA-required one-time fee is based on your down payment amount and the number of times you’ve used your VA loan.
• Loan principal and interest: The principal is the amount of your loan, and interest is the percentage rate you’ll pay to borrow that amount. You’ll pay both principal and interest on your loan each month, and escrow will withhold your first payment. 
• Property taxes: The annual property taxes will be prorated so you pay a portion of your tax bill every month from an escrow account.
• Homeowner’s insurance: Your homeowner’s insurance fees will also be prorated and held in a separate escrow account to pay your premiums.
• Association charges: When your home is part of a homeowners or condo association, your VA mortgage will require you to pay those fees through an escrow account. 
• Discount points: This elective charge is paid to the lender in exchange for a lower interest rate on your mortgage during closing.
• Closing costs: You’ll pay the appraisal, government taxes, escrow charges, recording and transfer fees, and your portion of the title search and insurance. 
• Lender fees: A VA-backed mortgage from the local lender may have additional charges you’ll also need to pay.
  Real estate commission: Depending on your location, you may need to pay your agent’s real estate commission.

VA allows your seller or the home builder to offer credits to pay some of the costs listed above. There’s a limit of 4% of the reasonable home value, however, for any contribution.

VA house loans typically don’t require a down payment. You may, however, need to pay a down for a VA home mortgage loan when you have the following:

• Low credit score
• Local lender down payment requirement
• High debt-to-income ratio
• Partial VA entitlement
• Guaranteed Loan Program (GPM) participation
• Home appraisal lower than the purchase price

Unlike conventional loan borrowers, buyers using a VA mortgage generally don’t need a down payment to purchase most homes.

Your VA funding fee, however, is adjusted with the amount of your down payment. The more you put down, the lower your fee will be.

The local lender who funds the VA-backed loan may also require a specific amount of down payment based on your creditworthiness and the amount of your mortgage.

Mortgage interest rates change frequently, often many times within the same day. They depend on a number of factors, including:

• buyer credit scores
• down payment amount
• loan total
• debt-to-income ratio
• Federal Reserve policy
• inflation
• unemployment rate
• bond market
• local availability of houses
• local housing market
• home price
• individual lender loan programs

View the current mortgage interest rates in your state.

Your funding fee is a payment to use your VA loan eligibility for the home purchase. The required amount depends on the size of your down payment and the number of times you’ve used your VA loan.

First-time users currently pay between 1.25% and 2.15%. After your first use, you’ll pay between 1.25% and 3.3%. Borrowers who have a down payment of only 5% pay the highest fee.

Veterans receiving compensation for a service-connected disability (rating of 10% or higher) generally aren’t required to pay a funding fee.

You may also be exempt if you receive retirement or active-duty pay in lieu of service compensation, you’re a surviving spouse receiving Dependency and Indemnity Compensation (DIC) or you’ve received a Purple Heart.

Mortgage lenders generally allow many buyers to roll the VA funding fee into the home loan.

VA loans for the military do not require the buyer to pay for Private Mortgage Insurance (PMI). This is because the mortgage is backed by the VA and has less risk for the lender.