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Zero Down Payment Mortgage Calculator

Calculate payments for VA, USDA, and 0% down loans. Automatically estimates PMI, MIP, and Funding Fees based on loan type.

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About

Zero down payment loans are powerful tools for entering the housing market without significant capital reserves. However, the lack of immediate equity introduces specific costs that standard calculators overlook: Private Mortgage Insurance (PMI), Mortgage Insurance Premiums (MIP), and Funding Fees. These fees protect the lender against the heightened risk of 100% Loan-to-Value (LTV) financing.

This calculator is tailored for VA Loans (Veterans), USDA Loans (Rural Development), and specific conventional programs. It integrates a dynamic fee estimator that automatically adds the mandatory insurance costs to your monthly payment, providing a realistic view of the true cost of "zero down" homeownership.

zero down VA loan USDA PMI mortgage

Formulas

The adjusted loan amount Padj often includes the funding fee:

Padj = P × (1 + Fee%)

Total Monthly Payment T includes the base mortgage M and insurance I:

T = M(Padj) + P × PMIrate12

Reference Data

Loan TypeFunding Fee / UpfrontMonthly Insurance
VA Loan2.3% - 3.6% (Rolled in)NONE
USDA Loan1.0% (Rolled in)0.35% of Balance
Conventional (97/3)None0.5% - 1.5% (PMI)
FHA (3.5% down min)1.75%0.55% (MIP)

Frequently Asked Questions

Generally, no. Truly zero down loans are restricted to qualifying veterans (VA Loans) and properties in designated rural areas (USDA Loans). Some credit unions offer 0% down conventional loans to high-income earners (physician loans), but these are niche products.
No. You still need to pay closing costs (appraisal, title, taxes), which typically range from 2% to 5% of the purchase price, unless the seller agrees to pay them (Seller Concessions).
Since VA loans do not require monthly mortgage insurance (PMI), the Funding Fee (typically 2.3% for first-time use) acts as an upfront insurance policy pooling risk for the government. It can be financed into the loan amount.