No. VA loans never require Private Mortgage Insurance (PMI) regardless of your down payment size — and that can save you $100–$300+ every month compared to a conventional or FHA loan.
What You Pay Instead of PMI
Instead of a recurring monthly PMI charge, VA loans use a one-time VA Funding Fee. The fee ranges from 1.25% to 3.3% of the loan amount, depending on your down payment and whether it's your first time using the benefit.
One-time fee, not monthlyYou pay it once at closing — there's no recurring monthly mortgage insurance added to your payment.
Can be rolled into the loanMost borrowers finance the funding fee into their loan amount, so it requires no cash out of pocket at closing.
Waived for disabled veteransVeterans with a service-connected disability rating are exempt from the funding fee entirely.
VA vs. FHA vs. Conventional: Mortgage Insurance Compared
Here's how the monthly mortgage insurance cost compares on a $350,000 loan:
Loan Type
Mortgage Insurance
Typical Monthly Cost
VA Loan
None (one-time funding fee)
$0
FHA Loan
MIP (for life of loan)
~$240/mo
Conventional (< 20% down)
PMI (until 20% equity)
~$150–$300/mo
On a $350,000 loan, a VA borrower can save $1,800–$3,600+ per year compared to FHA or conventional loans with less than 20% down.
Who Qualifies for a VA Loan?
VA loans are available to active-duty service members, veterans, and eligible surviving spouses who meet the VA's service requirements. Generally, you qualify with 90 days of active duty during wartime, 181 days during peacetime, or 6 years in the Reserves or National Guard. You'll need a valid Certificate of Eligibility (COE), which your lender can pull electronically in minutes.
Get Your Personalized VA Loan Quote
See your exact numbers — down payment, funding fee, and monthly payment — in about 60 seconds.