VA Mortgage Calculator · Practical guide
VA Loan vs Conventional Loan Monthly Payment
No down payment and no PMI usually give VA loans the lower monthly cost — here is the side-by-side math.
At a glance
The Short Answer
On a $300,000 home, a VA loan at 6% with 0% down costs about $1,837 a month (funding fee financed). A conventional loan at 6.5% with 10% down costs about $1,707 a month plus roughly $113 of PMI — about $1,820 total — and requires $30,000 cash upfront. Nearly identical monthly cost, but the VA loan needs no down payment.
Interactive tool
VA Mortgage Calculator
Enter your own values, then compare the result with the examples below.
Side-by-Side Comparison
| VA Loan | Conventional Loan | |
|---|---|---|
| Home price | $300,000 | $300,000 |
| Down payment | $0 | $30,000 (10%) |
| Extra charges | $6,450 funding fee (financed) | ~$113/mo PMI until 20% equity |
| Amount financed | $306,450 | $270,000 |
| Rate / term (example) | 6% / 30 yr | 6.5% / 30 yr |
| Monthly payment | ~$1,837 | ~$1,820 ($1,707 + PMI) |
Why the VA Payment Stays Low
Three structural advantages stack up: no PMI at any down payment, VA rates typically run a quarter to half a point below conventional rates, and the one-time funding fee replaces years of monthly insurance premiums. Run your own rate quotes through the calculator above to compare real offers.
When Conventional Can Win
With 20% or more down and strong credit, a conventional loan avoids both PMI and the funding fee — and on subsequent VA use with little down, the 3.3% fee ($9,900 on $300,000) can tip the math. Veterans exempt from the funding fee, though, almost always come out ahead with the VA option.
Frequently Asked Questions
Do VA loans have lower interest rates than conventional loans?
Typically yes — VA rates often run about 0.25 to 0.5 percentage points lower because the VA guaranty reduces lender risk.
Can I use a VA loan more than once?
Yes. The benefit is reusable, though the funding fee rises to 3.3% for subsequent use with less than 5% down. Entitlement can also be restored after the loan is paid off.
Is there a loan limit on VA loans?
Borrowers with full entitlement have no VA-imposed loan limit, though lenders apply their own underwriting caps. Partial entitlement can bring county loan limits into play.
Does a conventional loan ever beat a VA loan?
It can with 20% down and excellent credit, since you avoid both PMI and the funding fee. Exempt veterans pay no fee at all, so VA usually wins for them regardless.