Do FHA and VA Loans Require Mortgage Insurance in 2026? (Des Moines Homebuyer Guide)

If you're buying a home in Des Moines using an FHA or VA loan, one of the most common questions in 2026 is:

“Do I have to pay mortgage insurance?”

The answer depends on which loan program you choose—and the costs can impact your monthly payment more than you think.

Let’s break it down clearly.

FHA Loans and Mortgage Insurance

Yes—FHA loans require mortgage insurance, regardless of your down payment.

There are two parts:

1️⃣ Upfront Mortgage Insurance Premium (UFMIP)

• Typically 1.75% of the loan amount

• Can be rolled into the loan balance

2️⃣ Annual Mortgage Insurance Premium (MIP)

• Paid monthly

• Usually between 0.45% and 0.85% annually, depending on loan size and down payment

How Long Does FHA Mortgage Insurance Last?

• If you put less than 10% down, MIP typically lasts for the life of the loan

• If you put 10% or more down, MIP generally lasts 11 years

This is one of the biggest long-term cost considerations with FHA financing.

VA Loans and Mortgage Insurance

Here’s where VA loans stand out:

VA loans do NOT require monthly mortgage insurance.

Instead, they charge a VA Funding Fee, which:

• Is a one-time fee

• Varies based on:

  • First-time or repeat use

  • Down payment amount

  • Type of service

• Can usually be financed into the loan

For many buyers, avoiding monthly mortgage insurance can mean significant monthly savings compared to FHA.

Why This Question Is Trending in Des Moines

With affordability top-of-mind in Iowa, buyers are carefully comparing:

• Monthly payments

• Long-term costs

• Break-even timelines

• Refinance strategies

Even small differences in mortgage insurance can impact affordability over time.

FHA vs VA: Which Is Cheaper?

It depends on:

• Military eligibility

• Down payment amount

• Credit profile

• Long-term homeownership plans

For eligible veterans, VA loans often provide lower long-term costs due to no monthly mortgage insurance.

For buyers without VA eligibility, FHA remains a strong low down payment option—but mortgage insurance must be factored in.

Bottom Line

• FHA loans require both upfront and monthly mortgage insurance

• VA loans require a funding fee but no monthly mortgage insurance

• The right choice depends on eligibility and long-term strategy

Understanding these costs upfront can prevent surprises and help you choose the loan that truly fits your financial goals.