VA loans are mortgages guaranteed by the Department of Veteran's Affairs. Eligible veterans and active duty military can purchase a new home with no money down and pay no monthly PMI. VA loans can be eligible for Interest Rate Reduction Refinance Loans when mortgage rates decrease. VA loans are available to eligible veterans, active duty, reservists, and surviving spouses. VA loans allow 100% financing (no down payment) without paying monthly PMI. VA funding fee percentage is impacted by making a 5% or more down payment. 5% down decreases the funding fee to 1.50% (1.75% for reservists). A down payment of 10% or more reduces the funding fee another 0.25%. Calculations by this tool are believed to be accurate, yet are not guaranteed. Further review is necessary to obtain an exact qualification.