- PMI is monthly on conventional loans under 20% equity. It can be canceled.
- FHA MIP has an upfront piece, often 1.75%, and an annual piece. With less than 10% down it usually lasts for the life of that loan.
- VA funding fee is usually a one-time financed charge. There is no monthly mortgage insurance. Some Veterans are exempt.
Compare
PMI, FHA MIP, and the VA funding fee
All three protect the program or the lender when you put little down. They are not the same product, and only some of them go away.
Questions
Straight answers
Which is cheapest?
It depends on score, down payment, and how long you keep the loan. We do not call one the lowest.
Can I avoid all three?
20% down on conventional, or a VA exemption, are the clean cases.
Is the VA fee the same as PMI?
No. It is not charged every month.
Does MIP drop off automatically?
Only in the cases the FHA rules allow, often 11 years if you put 10% or more down.
Who is exempt from the VA fee?
Often Veterans receiving VA disability compensation, and some surviving spouses. The COE or an award letter shows it.
Can the fee be financed?
Upfront FHA MIP and the VA funding fee usually are.
Reviewed by Patrick Crawford, NMLS #231625 · Last updated October 28, 2026