Question:

Do I have to pay VA mortgage insurance?

Answer:

If you have ever used a VA loan, you surely know that VA mortgage loans do not require any down payment and there is no VA mortgage insurance to pay.

Usually, lenders require all borrowers making less than 20% down payment to pay PMI (private mortgage insurance). However, with VA home loans lenders are forbidden to require private mortgage insurance payment from borrowers. For any other loan - FHA or conventional - borrowers are required to pay PMI for mortgage loans with LTV (loan to value ratio) over 80%.

Beside not having to pay VA mortgage insurance, borrowers should know that VA loans are assumable. Also, once the VA loan is repaid they can get a new one. Avoiding PMI is only one of the VA mortgage benefits.

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Common misspellings: mortage and morgage