What type of loan never requires monthly mortgage insurance?

A 100% VA loan is a type of mortgage that is backed by the U.S. Department of Veterans Affairs, specifically designed to benefit eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. One of the significant advantages of this loan is that it does not require monthly mortgage insurance premiums, which can be a considerable expense for borrowers.

Instead of traditional mortgage insurance, VA loans require a one-time funding fee that can be financed into the loan amount. This fee varies based on several factors, including the down payment, service history, and whether it is the borrower's first VA loan. The absence of monthly mortgage insurance makes 100% VA loans particularly attractive for those who qualify, as it can result in lower monthly payments when compared to loans that do require mortgage insurance.

In contrast, the other options listed typically involve some form of mortgage insurance. FHA loans generally require monthly mortgage insurance premiums regardless of the down payment amount. Conventional loans can require private mortgage insurance (PMI) if the down payment is less than 20%. Jumbo loans, which are non-conforming loans that exceed the limits set by Fannie Mae and Freddie Mac, may also have requirements for mortgage insurance, depending on the lender and the borrow