Use this VA vs. conventional calculator to compare estimated monthly payments for two common mortgage options.
Our calculator lets you adjust the home price, down payment, interest rate, loan term and VA funding fee so you can see how each assumption changes the payment.
VA loans can allow eligible borrowers to buy with no down payment and no monthly mortgage insurance, but most nonexempt borrowers pay a VA funding fee. The funding fee percentage depends on the loan type, service category, down payment amount and whether you’ve used a VA loan before, and it can be paid at closing or financed into the loan.
Conventional loans may allow down payments as low as 3% through certain programs from Fannie Mae and Freddie Mac, the government-sponsored enterprises that buy mortgages from lenders and set many conventional loan guidelines, but private mortgage insurance is typically part of the payment when you put less than 20% down
VA vs. Conventional Calculator Basics
| Calculator Input |
What It Means |
Why It Affects The Result |
| Home price |
The purchase price you want to test |
A higher price usually means a higher loan amount, monthly payment, taxes and insurance estimate. |
| VA down payment |
The amount you plan to put down on the VA loan |
A larger down payment lowers the base loan amount and may reduce the VA funding fee percentage. |
| Conventional down payment |
The amount you plan to put down on the conventional loan |
A larger down payment lowers the loan amount and can reduce or eliminate private mortgage insurance. |
| VA rate and conventional rate |
The interest rates you want to compare |
Even a small rate difference can change the monthly principal and interest payment. |
| VA funding fee |
The VA fee percentage used in the estimate |
If financed, the fee increases the VA loan balance. If paid at closing, it increases upfront costs instead. |
What To Know Before Comparing VA And Conventional Loans
A VA loan may be useful if you’re eligible for VA financing and want to compare a low- or no-down-payment option without monthly mortgage insurance. The calculator reflects that structure by excluding monthly mortgage insurance from the VA side and including a VA funding fee input instead.
A conventional loan may be useful if you have strong credit, a larger down payment or a scenario where private mortgage insurance is relatively low. Conventional loans do not have a VA funding fee, but a conventional loan with less than 20% down usually includes private mortgage insurance, which can affect the monthly estimate.
The calculator is designed to show the monthly payment tradeoff. It does not mean one loan type is automatically better. A lower estimated monthly payment may still come with higher upfront costs, different eligibility rules or different long-term costs.
How To Use The VA Vs. Conventional Calculator
1. Enter The Home Price
Start with the purchase price of the home you want to compare. The calculator uses that price for both loan options so the comparison stays consistent.
2. Adjust Each Down Payment
Use the VA down payment slider and the conventional down payment slider separately. VA loans and conventional loans often have different minimum down payment structures, so separate inputs give you a cleaner comparison.
3. Compare The Interest Rates
Enter the rate you want to test for each loan. The calculator does not assume that VA and conventional rates are the same, so you can compare a realistic lender quote for each option.
4. Choose How To Treat The VA Funding Fee
You can estimate the VA funding fee as either financed into the loan or paid at closing. Financing the fee can reduce upfront cash needed, but it also increases the VA loan balance used to calculate the monthly payment.
5. Review The Monthly Difference
The calculator shows which option has the lower estimated monthly payment under your current assumptions. The lower-payment option can change when you adjust the down payment, interest rate, funding fee or loan term.
What The Estimate Includes
The calculator estimates principal and interest, a shared taxes and insurance assumption, the VA funding fee if financed and conventional private mortgage insurance when the conventional down payment is below 20%.
It does not estimate every possible closing cost, lender fee, discount point, homeowners association fee or property-specific expense. Your actual payment can also change based on credit profile, occupancy, loan size, property type, mortgage insurance pricing and lender requirements.
How To Read Your VA Vs. Conventional Results
Start with the monthly payment difference, then look at what is creating that difference. If the VA estimate is lower, the main reason may be the absence of monthly mortgage insurance. If the conventional estimate is lower, it may be because of a larger down payment, lower rate or no financed VA funding fee.
A lower monthly estimate does not always mean a lower overall cost. Financing the VA funding fee can increase the loan balance, which affects both the monthly payment and the amount of interest paid over time. A conventional loan may have private mortgage insurance at first, but that cost may not last for the full loan term if the loan later meets cancellation requirements.
Use the result to compare payment structure and cash needs. A VA loan may require less money down, while a conventional loan may become more competitive when you put more down or qualify for stronger pricing.
What The Calculator Does Not Decide
The calculator does not decide whether you qualify for a VA loan or a conventional loan. VA eligibility depends on service-related requirements, and conventional loan approval depends on lender review, credit profile, income, assets, debt and property eligibility.
The calculator also does not confirm the exact VA funding fee, private mortgage insurance premium, closing costs, appraisal results or final interest rate. Those details can change the comparison once a lender reviews the full loan file.
When A VA Loan May Compare Better
A VA loan may show a lower estimated monthly payment when you are eligible for the program, want to buy with little or no down payment, qualify for competitive pricing and benefit from not having monthly mortgage insurance. Some borrowers are also exempt from the VA funding fee, including certain veterans receiving VA compensation for a service-connected disability.
When A Conventional Loan May Compare Better
A conventional loan may compare better if you have a larger down payment, strong credit, a lower conventional rate or a scenario where private mortgage insurance is modest or no longer required. Conventional loans may also fit borrowers who are not eligible for VA financing or who want to compare options without a program-specific funding fee.
The Bottom Line
The VA vs. conventional calculator gives you a side-by-side payment estimate using the same home price and loan term. Use the result as a planning tool, not as a final loan quote. The better option depends on eligibility, rate, down payment, mortgage insurance, VA funding fee status and total costs over time.
Frequently Asked Questions
Is A VA Loan Always Cheaper Than A Conventional Loan?
No. A VA loan may have a lower monthly payment because it does not require monthly mortgage insurance, but the result depends on the interest rate, funding fee, down payment and whether the funding fee is financed.
Does A VA Loan Require Mortgage Insurance?
No. VA loans do not have monthly mortgage insurance. Most nonexempt borrowers pay a VA funding fee instead, and that fee can be paid at closing or financed into the loan.
Can A Conventional Loan Have A 3% Down Payment?
Yes, some conventional programs allow down payments as low as 3%, subject to program rules and lender approval. Fannie Mae HomeReady and Freddie Mac Home Possible both include low down payment options for eligible borrowers.
Why Does The Calculator Include Private Mortgage Insurance For Conventional Loans?
Private mortgage insurance is commonly required on conventional loans when the down payment is below 20%. The calculator uses a simplified PMI estimate so you can compare the monthly impact.
Can The VA Funding Fee Be Financed?
Yes. Borrowers may finance the VA funding fee or pay it in cash at closing. Financing it increases the loan balance used in the payment estimate.
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