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Part of our mortgage loan will be from VA.. Are we still going to need PMI?

  • November 07 2011 - Leicester
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Answers (4)

VA loans are usually100% loans, if your credit qualifies. If you ahve to put money down and it is 20% of loan there should be no PMI. Your lender should go over all these different senerios with you.
  • November 07 2011
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Nancy, you say "part of your mortgage". If you have at least 20% of the appraised value as a down payment, you will be able to avoid the equivalent of mortgage insurance. But your lender should have given you a closing estimate with your loan approval, so you can check to see if and how it's listed there. Be sure your comfortable with your lending agent!
  • November 07 2011
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If you are getting a VA mortgage you don't have monthly mortgage insurance. But you do have a funding fee which is what VA uses to fund their reserve funds for paying on claims for mortgages that go in default. 

The funding fee is VA's form of mortgage insurance it isn't PMI-private mortgage insurance (Conventional Mortgages) and it isn't MI-Mortgage insurance (FHA loans)

The amount of the funding fee varies depending on if it is your first use of VA entitlement and the source of entitlement (active or reserve service).
  • November 07 2011
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Check with your lender
  • November 07 2011
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