VA vs FHA Loan Calculator
Compare a VA loan and an FHA loan on the same home: monthly payment, funding fee vs mortgage insurance, cash to close and total cost. Free, private, no signup.
| VA loan | FHA loan |
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* Principal, interest and mortgage insurance. Property taxes and homeowners insurance are the same for both loans, so they are left out. ** Down payment plus any upfront fee you do not finance; other closing costs are not included. "Cost of borrowing" adds up interest, mortgage insurance and the upfront fee over the years you keep the loan. The down payment is not counted because it stays as equity in your home.
Want a full VA payment with taxes and insurance? Use the VA loan payment calculator →
🔒 100% private — your numbers stay in your browser. Nothing is uploaded, no email or phone number required.
FHA premiums from HUD Mortgagee Letter 2023-05 and VA funding fee rates effective April 7, 2023, both still in effect and last checked October 2026. Estimates only; your lender's figures are the ones that count.
How this VA vs FHA calculator works
It prices the same home twice. The VA side adds the VA funding fee for your down payment and usage, and charges no monthly mortgage insurance. The FHA side adds the 1.75% upfront mortgage insurance premium (UFMIP) and the annual premium (MIP) that matches your loan size, term and down payment, charged monthly for as long as HUD requires.
Then it adds up what each loan really costs you over the years you expect to keep it: interest, mortgage insurance and the upfront fee. That is a fairer comparison than the monthly payment alone, because the two loans have different fees and the FHA loan starts with a down payment.
VA funding fee vs FHA mortgage insurance at a glance
| VA loan | FHA loan | |
|---|---|---|
| Minimum down payment | 0% | 3.5% (credit score 580+) |
| Upfront fee | Funding fee 1.25%–3.30% (0% if exempt) | Upfront MIP 1.75% |
| Monthly mortgage insurance | None | 0.15%–0.75% a year (0.55% for most 30-year loans with 3.5% down) |
| How long it lasts | Not applicable | Life of the loan with less than 10% down; 11 years with 10% or more |
| Who can use it | Eligible veterans, service members and some surviving spouses | Any qualified borrower buying a primary residence |
Sources: VA.gov funding fee and HUD Mortgagee Letters (ML 2023-05).
An example
Take a $350,000 home on a 30-year loan. The veteran uses the VA benefit for the first time with nothing down at 6.5%, and finances the 2.15% funding fee of $7,525, so the loan is $357,525 and the payment is about $2,260 a month.
The same buyer with an FHA loan puts 3.5% down ($12,250) at the same 6.5% rate. The $5,911 upfront premium is financed, so the loan is $343,661. Principal and interest come to about $2,172, but mortgage insurance at 0.55% adds about $157, for a total of about $2,329 a month, and that premium never goes away.
So the VA loan is about $69 a month cheaper and needs $12,250 less cash at closing. Over seven years it costs about $5,000 less in interest, mortgage insurance and fees. If the VA rate is a quarter point lower, as it often is, the gap grows to about $128 a month and $11,300 over seven years.
When an FHA loan can still make sense
- You are not eligible for a VA loan, or you cannot get your Certificate of Eligibility in time.
- Your remaining VA entitlement is limited because a previous VA loan is still open, and the lender would ask for a down payment anyway.
- A lender quotes you a clearly lower FHA rate. Enter both real quotes above and compare the cost over the years you plan to stay.
For the full comparison, including eligibility and credit, read our guide VA loan vs. FHA loan: which is better for veterans?
Frequently asked questions
Is a VA loan cheaper than an FHA loan?
Usually, yes. A VA loan has no monthly mortgage insurance and needs no down payment, while an FHA loan charges a 1.75% upfront premium plus an annual premium of 0.15% to 0.75%, which often lasts for the life of the loan. The VA funding fee is a one-time cost and many veterans are exempt from it.
What is the difference between the VA funding fee and FHA MIP?
The VA funding fee is a one-time charge of 1.25% to 3.30% of the loan amount on a purchase, and it can be financed. FHA charges an upfront mortgage insurance premium of 1.75% plus an annual premium paid monthly. With less than 10% down, the FHA annual premium lasts for the life of the loan.
How long do you pay mortgage insurance on an FHA loan?
With a down payment of 10% or more, FHA annual mortgage insurance lasts 11 years. With less than 10% down, it lasts for the life of the loan unless you refinance into a different loan type.
When can an FHA loan be better than a VA loan?
FHA can make sense if you are not eligible for a VA loan, if your remaining VA entitlement is limited, or if a lender offers you a meaningfully lower FHA rate. Run both scenarios with your real quotes to see which costs less.
Are these FHA mortgage insurance rates current?
The calculator uses the FHA premiums set by HUD Mortgagee Letter 2023-05, which remain in effect in 2026, and the VA funding fee schedule effective April 7, 2023. Always confirm the final figures with your lender.
More tools
VA Loan Payment Calculator — monthly payment and amortization schedule.
VA Funding Fee Calculator — see your fee and how a down payment changes it.
VA Loan Affordability Calculator — how much house can you afford?
VA Loan vs. Conventional Loan — compare them side by side.
VA Entitlement Calculator — remaining entitlement and the largest $0 down loan.
VA Closing Cost Calculator — estimate fees, prepaids and your cash to close.
VA Residual Income Calculator — check the VA residual income test for your family.
VA vs Conventional Loan Calculator — compare payments, the funding fee vs PMI and total cost.
VA Loan DTI Calculator — your debt-to-income ratio against the 41% benchmark.
VA Loan Guides — eligibility, closing costs, limits, IRRRL, FHA and more.