Which loan actually builds you more wealth — with your rate, your state, and your rating.
The cheapest monthly payment and the loan that builds the most wealth are usually not the same loan, and most VA loan comparisons only show the first. This simulator compares a $0-down VA loan against FHA and conventional alternatives the way the money actually works: what each costs per month with PMI and FHA MIP modeled to their real cancellation rules, what happens to the down payment you did not spend if it stays invested, and what your state's veteran property tax exemption is worth at your disability rating — modeled against each state's actual statute and assessment basis, verified in August 2026. You enter your home price, state, rating, and how long you plan to hold the property; it returns a monthly comparison, your tax savings, a cash-position analysis, a cumulative cost timeline, and a single bottom-line verdict with the math shown. The funding fee waiver for veterans receiving disability compensation is applied automatically.
The core idea: adjusted cost. Each loan's total cost over your holding period is payments plus down payment, minus the growth that cash would have earned invested instead (7% market return by default, against 3.5% home appreciation — both editable). This is why a $0-down VA loan often beats a 20%-down conventional loan that has a lower monthly payment: the $70,000 you didn't put down keeps compounding.
Mortgage insurance, modeled honestly. Conventional PMI (0.7% of loan) ends when the loan amortizes to 78% of original value, per the Homeowners Protection Act. FHA MIP (HUD ML 2023-05 rates, unchanged through FY2026) runs 11 years with 10%+ down and the life of the loan below that. VA loans carry neither. The funding fee — 2.15% first use, 3.30% subsequent at $0 down — is waived for veterans receiving disability compensation and rolled into the loan otherwise.
Rates. Defaults reflect August 2026 market averages, where VA rates run below conventional (about 6.3% vs 6.75%). Every rate is editable — use your actual quotes.
Property taxes. Each state's veteran exemption is modeled against the basis its statute actually uses — market, assessed, or taxable value — converted with that state's residential assessment ratio, with effective rates from Census ACS data. Verified against state statutes in August 2026.
What we do not model. County-level tax variation, closing costs other than the funding fee and upfront MIP, rate buydowns, and refinancing. Where your county differs from the state average, your county assessor wins.
Not on the monthly payment alone. A conventional loan with 20% down borrows less, so it can have a lower monthly payment than a $0-down VA loan on the same house. The VA loan usually wins on total wealth: you keep the down payment invested instead of locking it in home equity, you never pay PMI, and VA rates typically run about a quarter to half a point below conventional rates. Whether that wins for you depends on how long you hold the home and what your invested cash earns, which is exactly what this simulator models.
No. The funding fee is completely waived for veterans receiving VA disability compensation at any compensable rating, every time they use the benefit. For everyone else at $0 down it is 2.15% of the loan on first use and 3.30% on subsequent use, and it is usually rolled into the loan. On a $350,000 home the waiver is worth $7,525 on a first use.
Lower. VA loans are government-backed, so lenders price them below conventional loans — typically by a quarter to half a percentage point. In August 2026 the average 30-year VA rate was about 6.3% versus roughly 6.75% conventional. If a lender quotes you a VA rate above their conventional rate, shop elsewhere.
It depends heavily on your state and rating. Some states fully exempt the primary residence of a 100% or Permanent and Total rated veteran — worth thousands per year. Others exempt a fixed amount, and some write that amount against assessed value rather than market value, which changes what it is really worth. This tool models each state's actual exemption structure, verified against state statutes in August 2026, and folds the savings into your monthly cost.
Both are mortgage insurance you pay because of a small down payment, but they end differently. Conventional PMI cancels automatically once your loan amortizes to 78% of the original home value, and you can request removal at 80%. FHA MIP with less than 10% down lasts the life of the loan — refinancing is the only way out — and with 10%+ down it still runs 11 years. VA loans charge neither, at any down payment.