Updated November 2026.
Short answer: no. VA loans do not require private mortgage insurance, and they carry no monthly mortgage insurance of any kind. That single fact is one of the largest financial advantages of the VA benefit, and it is also the source of most of the confusion about what veterans do pay.
Why there is no PMI on a VA loan
Private mortgage insurance protects a lender when a borrower makes a smaller down payment. On a VA loan, the Department of Veterans Affairs guarantees a portion of the loan instead, so the lender does not need PMI to cover that risk.
What veterans pay instead: the VA funding fee
The VA funding fee is a one time charge that helps fund the program. Most veterans finance it into the loan rather than paying it at closing. The amount depends on whether this is your first use of the benefit, whether you make a down payment, and the loan type. The VA publishes the current fee table.
Who pays no funding fee at all
- Veterans receiving VA compensation for a service connected disability
- Veterans entitled to compensation but receiving retirement or active duty pay instead
- Surviving spouses receiving Dependency and Indemnity Compensation
- Active duty service members who have received a Purple Heart
If you fall into one of these groups and were charged a fee, you may be due a refund. Ask.
VA vs FHA vs conventional mortgage insurance
| VA | FHA | Conventional (smaller down payment) | |
|---|---|---|---|
| Monthly mortgage insurance | None | Yes, usually for the life of the loan | Yes, until you reach enough equity to cancel |
| Upfront charge | One time funding fee, often financed, waived for exempt veterans | Upfront premium, financed | None |
| Removable | Nothing to remove | Usually only by refinancing | Yes, by request or automatically at a set equity point |
What that means over time
Monthly mortgage insurance is money that builds no equity. Over the life of a loan, not paying it keeps real money in a veteran’s household, which is exactly the point of the benefit.
Frequently asked questions
Do VA loans have mortgage insurance of any kind?
No monthly mortgage insurance. The one time funding fee is the only program charge, and many veterans are exempt.
Can the VA funding fee be rolled into the loan?
Yes, on most purchase and refinance loans.
Is the VA funding fee tax deductible?
Rules have changed recently. Ask your tax professional about your situation.
Does a VA IRRRL have a funding fee?
Yes, a reduced one, unless you are exempt.
Tim Stacey is a Northern California mortgage broker and loan officer with Stacey Solutions powered by Xpert Home Lending, serving Vacaville, Fairfield, Solano County, and veterans near Travis Air Force Base. Tim Stacey NMLS 2041923 | Xpert Home Lending, Inc NMLS 2179191. NAMB Mortgage Broker of the Year honoree 2024, 2025, 2026. This article is educational and is not a commitment to lend. Loan approval is subject to credit, income, property, and program qualifications. Programs and guidelines change without notice. Equal Housing Opportunity.
Disclaimer: This article is provided for marketing and informational purposes only and should not be considered a commitment to lend, financial advice, or a guarantee of loan approval, rate, or results. Any rates, terms, monthly payments, savings estimates, or loan scenarios mentioned are examples for illustration only. Actual loan terms, interest rates, and program availability may vary and are subject to change without notice. Loan qualification and final terms depend on factors including credit profile, income, assets, property type, loan amount, loan to value, occupancy, and underwriting requirements. Taxes, insurance, and association fees are estimates unless otherwise stated and may change. Not all borrowers will qualify. All loans are subject to credit and underwriting approval. Contact Stacey Solutions powered by Xpert Home Lending, Inc. NMLS 2179191 for a personalized quote based on your individual qualifications.
Tim Stacey is a California licensed mortgage broker and VA home loan specialist serving Solano County, Northern California, and clients throughout the state. He helps veterans and active duty families use their VA benefits with clarity and confidence. Tim was recognized by the National Association of Mortgage Brokers as Mortgage Broker of the Year in 2024, 2025 and 2026, three consecutive years. Finalist for Best Loan Officer in Solano County, recognized by The Reporter in 2025. His focus is simple. Provide clear guidance, protect clients from costly mistakes, and help families build long term stability through homeownership. NMLS#2041923
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