Use this VA vs. FHA calculator to compare estimated monthly payments for two government-backed mortgage options. The calculator lets you adjust the home price, VA down payment, FHA down payment, interest rates, loan term and upfront fee treatment.
VA loans are available to eligible service members, veterans and certain surviving spouses, and they do not require monthly mortgage insurance. Most nonexempt VA borrowers pay a funding fee, which varies based on loan type, down payment, military category and prior use of the benefit.
FHA loans are more broadly available to qualifying borrowers, but most FHA forward mortgages include upfront and annual mortgage insurance premiums.
VA Vs. FHA Calculator Basics
| Calculator Input |
What It Means |
Why It Affects The Result |
| Home price |
The purchase price you want to compare |
The home price affects the loan amount, taxes and insurance estimate. |
| VA down payment |
The VA down payment percentage used in the estimate |
A higher VA down payment lowers the base loan amount and may reduce the funding fee percentage. |
| FHA down payment |
The FHA down payment percentage used in the estimate |
A higher FHA down payment lowers the loan amount and monthly mortgage insurance estimate. |
| VA rate and FHA rate |
The interest rates used for each loan type |
The rate affects the monthly principal and interest payment. |
| Upfront fees |
Whether the VA funding fee and FHA upfront mortgage insurance premium are financed or paid at closing |
Financing upfront fees increases the loan balance. Paying them at closing increases upfront cash needed. |
What To Know Before Comparing VA And FHA
VA and FHA loans are both government-backed mortgage options, but they are built for different borrower groups. VA loans are limited to eligible borrowers with qualifying military service, while FHA loans are available to a broader range of qualifying borrowers.
The calculator highlights one of the biggest payment differences: VA loans do not include monthly mortgage insurance, while FHA loans usually include annual mortgage insurance premium payments. The VA side may still include a funding fee, and that fee can affect the payment when it is financed.
If you are eligible for VA financing, the VA estimate may often look more competitive. FHA can still be worth comparing if your VA eligibility, property type, loan structure or cash-to-close needs make the decision less straightforward.
How To Use The VA Vs. FHA Calculator
1. Enter The Home Price
Start with the purchase price you want to compare. The calculator applies that price to both options.
2. Adjust The Down Payment For Each Loan
Set the VA and FHA down payments separately. VA loans often allow eligible borrowers to buy with no down payment, while FHA loans generally require a down payment.
3. Enter A Rate For Each Loan
Use quoted or estimated rates for each loan type. A small difference between the VA and FHA rate can affect the monthly comparison.
4. Set The VA Funding Fee
Enter the VA funding fee percentage that matches the scenario you want to test. The correct percentage can vary, and some borrowers are exempt.
5. Review The Payment Difference
The calculator shows the estimated monthly payment for each option and the difference between them. The result can change as you adjust the rate, down payment, fee treatment or loan term.
What The Estimate Includes
The VA estimate includes principal and interest, a shared taxes and insurance estimate and the VA funding fee if financed. The FHA estimate includes principal and interest, a shared taxes and insurance estimate, the FHA upfront mortgage insurance premium if financed and the annual mortgage insurance premium divided into monthly payments.
The estimate does not include every cost that could appear on a loan estimate, such as discount points, lender fees, escrow setup costs, homeowners association dues or property-specific charges. It also does not determine VA or FHA eligibility.
How To Read Your VA Vs. FHA Results
Start by looking at the estimated monthly difference, then check what is driving it. If the VA payment is lower, it may be because the calculator excludes monthly mortgage insurance from the VA side. If the FHA payment is lower, the result may be tied to the rate, down payment or VA funding fee assumption.
The upfront fee toggle can materially change the comparison. Financing the VA funding fee or FHA upfront mortgage insurance premium increases the loan balance used in the monthly payment calculation. Paying those costs at closing may lower the monthly estimate but increase upfront cash needed.
Also compare how long you expect to keep the loan. A smaller monthly difference may matter less if you plan to sell or refinance soon, while mortgage insurance and financed fees may matter more if you expect to keep the loan for many years.
What The Calculator Does Not Decide
The calculator does not confirm VA eligibility, FHA approval, property eligibility, appraisal results, final interest rate, loan limits, closing costs or lender overlays.
It also does not determine whether you are exempt from the VA funding fee or how long FHA mortgage insurance will apply to your specific loan. Those details can change the monthly and long-term comparison.
When A VA Loan May Compare Better
A VA loan may compare better if you are eligible, want a low- or no-down-payment option and benefit from the absence of monthly mortgage insurance. The result can be especially different if you are exempt from the VA funding fee.
When An FHA Loan May Compare Better
An FHA loan may compare better if you are not eligible for VA financing, want a government-backed loan option with broader borrower availability or have a scenario where FHA pricing is more competitive. FHA mortgage insurance should be included in the comparison because it affects the monthly payment and total cost.
The Bottom Line
The VA vs. FHA calculator helps you compare estimated monthly payments for two government-backed loans. VA may offer advantages for eligible borrowers, especially because it has no monthly mortgage insurance. FHA may be useful for borrowers who are not VA-eligible or need a broadly available low-down-payment option. Final costs depend on eligibility, rate, down payment, fee status and lender review.
Frequently Asked Questions
Can Anyone Use A VA Loan?
No. VA loans are limited to eligible service members, veterans and certain surviving spouses. Eligibility is based on VA program rules.
Does VA Have Monthly Mortgage Insurance?
No. VA loans do not require monthly mortgage insurance. Most nonexempt borrowers pay a VA funding fee instead.
Does FHA Have A Funding Fee?
FHA does not use the VA funding fee structure. FHA loans generally include an upfront mortgage insurance premium and annual mortgage insurance premium.
Can The VA Funding Fee Be Waived?
Some borrowers are exempt from the VA funding fee, including certain veterans receiving VA compensation for a service-connected disability. Your Certificate of Eligibility and lender review can help confirm whether an exemption applies.
Is FHA Better If I Am Not VA-Eligible?
FHA may be worth comparing if you are not eligible for VA financing. The right option still depends on your credit, income, down payment, property type, loan amount and total costs.
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