Original article updated 2026-07-30. Retained for reference. Confirm current requirements with an appropriate provider or administering agency.
Direct answer
VA-backed mortgages do not require private mortgage insurance. Instead, many borrowers pay a one-time VA funding fee that helps support the program. The fee may be financed, and certain eligible veterans, service members, and surviving spouses can be exempt based on VA rules.
No PMI does not mean no loan costs
A VA borrower may still pay interest, property taxes, homeowners insurance, allowable closing costs, prepaid items, and any homeowners association dues. The funding fee amount can vary by loan purpose, down payment, and prior use of the benefit. A lender may also have its own credit, income, and underwriting requirements even though the VA sets the guaranty framework.
Compare the full VA payment and cash requirement
Use the VA mortgage calculator to include the funding fee and recurring housing costs. Review VA lender options because rates, fees, service, and underwriting overlays can differ. A down payment is not normally required by VA, but it may reduce the funding fee for some borrowers or help cover an appraisal gap.
Frequently asked questions
Is the VA funding fee the same as PMI?
No. PMI is recurring private insurance on many conventional loans. The VA funding fee is generally a one-time program charge, although it can be financed.
Who may be exempt from the VA funding fee?
Exemptions can apply to certain borrowers receiving qualifying VA disability compensation and some surviving spouses. Confirm status on the Certificate of Eligibility and with the lender.