Do VA loans have PMI?
No. VA loans do not have private mortgage insurance, and they do not have an FHA-style monthly mortgage insurance premium either. The funding fee replaces PMI economically — it's a one-time cost rather than a permanent monthly add-on.
What this actually means.
This is one of VA's strongest financial advantages. Conventional loans below 20% down typically pay PMI until the LTV reaches 78–80%. FHA pays monthly MIP for the life of most loans. VA pays a single funding fee at origination (often financed) and no monthly mortgage insurance after that. The math compounds — over a 5–10 year hold, VA's no-MI structure can save thousands compared to FHA on the same purchase. Subject to VA guidelines.
Where this can move.
First/subsequent use, down payment percentage, loan type (purchase, IRRRL, cash-out), and exemption status (disability, surviving spouse) drive the fee.
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More VA questions on Funding Fee.
Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with the VA, HUD, or any government agency.