No down payment does not always mean no cash at closing.

VA calculates the funding fee from the base loan amount, not the purchase price. VA's published example uses a $200,000 purchase with $10,000 down. The $190,000 base loan and 1.5 percent fee produce a $2,850 funding fee.

VA exempts several groups, including Veterans receiving VA compensation for a service-connected disability, Veterans eligible for that compensation but receiving retirement or active-duty pay instead, certain surviving spouses receiving Dependency and Indemnity Compensation, service members with a proposed or memorandum rating before closing, and active-duty service members who provide evidence of a Purple Heart by closing. Check the funding-fee status on your Certificate of Eligibility.

No. VA states that only the funding fee may be financed into a purchase or construction loan. Other costs are paid at closing by the buyer, a seller or lender credit, another permitted party, or a combination.

Yes. A down payment of at least 5 percent lowers the purchase funding fee to 1.5 percent. At least 10 percent down lowers the fee to 1.25 percent. Those two rates apply to first and subsequent use. Below 5 percent down, first use is 2.15 percent and subsequent use is 3.3 percent.

VA does not limit credits toward ordinary loan closing costs. VA separately limits seller concessions to no more than 4 percent of the home's reasonable value. Seller concessions include items such as paying the funding fee, eligible debt payoff, or prepaying hazard insurance.

The calculator separates remaining closing-cost credit from the buyer's earnest-money deposit. For example, $12,000 of credit plus a $2,000 deposit creates $14,000 of total credit and deposit. If entered costs total $11,000 and no down payment is due, $3,000 remains from two sources. The estimated result returns the buyer's $2,000 deposit through closing and leaves $1,000 of closing-cost credit to restructure toward eligible items. The unused closing-cost credit is not paid to the buyer as cash.

Earnest money is a deposit already paid under the purchase contract. The deposit first reduces the amount still due from the buyer. If seller or lender credits already cover the entered costs and no down payment remains, the calculator shows the unused portion of the buyer's deposit as an estimated return at closing. The Closing Disclosure and settlement agent control the final amount and delivery method.

The calculator uses the assumptions entered. Actual costs depend on the contract, property location, title company, insurance, taxes, closing date, lender charges, funding-fee status, and appraisal. The Loan Estimate and Closing Disclosure control the final amount.