VA Loan Examples With Funding Fee Calculations
Review three VA loan examples showing first-use zero down, 5% down, subsequent use, financed funding fees, payments, cash to close, and interest.
How should you use these VA Loan Calculator examples?
These examples turn the VA Loan Calculator inputs into complete scenarios with stated values, calculation steps, and interpreted results. Use them to check how the calculator behaves, compare your own situation with realistic cases, and identify which inputs have the greatest effect before relying on an estimate.
Three VA Loan Examples
These examples are generated by the tested VA Loan Calculator. They isolate how down payment and benefit-use status affect the funding fee, financed balance, payment and cash estimate.
Each scenario uses a $400,000 purchase, 6.25% fixed rate, 30-year term, $4,800 annual property tax, $1,800 annual homeowners insurance, no HOA, $10,000 closing costs, no confirmed fee exemption and a financed funding fee unless stated otherwise.
Example 1: First Use With Zero Down
The borrower selects first use, enters no down payment and finances the funding fee.
Loan amounts
| Base VA loan | $400,000.00 |
|---|---|
| Funding fee | $8,600.00 |
| Financed loan | $408,600.00 |
| Cash to close | $10,000.00 |
Initial payment
| Principal and interest | $2,515.82 |
|---|---|
| Property tax | $400.00 |
| Home insurance | $150.00 |
| Total payment | $3,065.82 |
The 2.15% first-use funding fee adds $8,600.00 to the financed balance. With no down payment and a financed fee, the cash estimate contains only the entered closing costs.
Example 2: First Use With 5% Down
The borrower enters a $20,000 down payment, equal to 5% of the purchase price. Other inputs remain unchanged.
| Down payment | $20,000.00 |
|---|---|
| Base VA loan | $380,000.00 |
| Funding-fee rate | 1.50% |
| Funding fee | $5,700.00 |
| Financed loan | $385,700.00 |
| Initial total payment | $2,924.82 |
| Cash to close | $30,000.00 |
| Total interest | $469,236.83 |
Reaching the 5% tier lowers the modeled funding-fee rate to 1.50%. The down payment also reduces the base loan, but it raises the amount of cash needed at closing.
Example 3: Subsequent Use With Zero Down
The borrower enters zero down and selects subsequent use. The lender must confirm use status from the Certificate of Eligibility.
| Base VA loan | $400,000.00 |
|---|---|
| Funding-fee rate | 3.30% |
| Funding fee | $13,200.00 |
| Financed loan | $413,200.00 |
| Principal and interest | $2,544.14 |
| Initial total payment | $3,094.14 |
| Total interest | $502,694.43 |
The 3.30% subsequent-use rate below 5% down produces a larger fee and financed balance than the first-use zero-down scenario. At down payments of at least 5%, the modeled first-use and subsequent-use rates are the same.
Compare the Three VA Scenarios
| Scenario | Funding fee | Financed loan | Initial payment | Cash to close | Total interest |
|---|---|---|---|---|---|
| First use, zero down | $8,600.00 (2.15%) | $408,600.00 | $3,065.82 | $10,000.00 | $497,096.06 |
| First use, 5% down | $5,700.00 (1.50%) | $385,700.00 | $2,924.82 | $30,000.00 | $469,236.83 |
| Subsequent use, zero down | $13,200.00 (3.30%) | $413,200.00 | $3,094.14 | $10,000.00 | $502,694.43 |
A lower payment is not automatically the best choice. The 5% down scenario requires more cash, while financing a larger funding fee increases the balance and interest. Compare official lender offers and preserve suitable reserves.
Reproduce the Results
- Open the VA Loan Calculator and select Reset.
- Enter the purchase price, down payment, rate, term and ownership costs shown.
- Select first or subsequent use for the scenario and leave fee exemption unselected.
- Keep Finance the VA funding fee selected.
- Select Calculate.
- Review the funding-fee card, payment details, charts and annual schedule.
Use the page links above to move directly between the first-use zero-down, 5% down and subsequent-use scenarios.
Corrections and Review
Report an issue or error in the calculator using the Contact Us page.