VA and FHA loans do not require PMI but both loans do have ways of insuring against investor loss. VA loans finance concurrently with the mortgage a âœVA Funding Feeâ. This fee runs from 1.25% to 3.35% depending upon down-payment, years of service and first or subsequent use. FHA loans require MIP. MIP is similar to PMI and the âœVA Funding Feeâ in that it is charged monthly like PMI and also financed concurrently with the mortgage like the âœVA Funding Feeâ. MIP is less expensive than PMI and âœVA Funding Feeâ in most cases. Â Talk to a Franklin Advantage professional. We take the time to explain the benefits and draw backs of every mortgage loan option available, making sure you make the right choice for you.