How Much Does Mortgage Insurance Cost in 2026? FHA, VA, USDA and PMI Compared

As of 20 Oct 2026, on a $350,000 home, year-one charges are up to $4,725 on USDA (annual fee for the loan's life), $7,525 on VA (paid once) and up to $7,768 on FHA (annual premium for 11 years or the full term). USDA is the lowest of those three. The insurer sets PMI: $1,263.50 to $4,721.50 at 5% down, Arch MI.

Financeradar data: only 2 of the 7 mortgage lenders on our best mortgage lenders page state an origination fee amount (read Oct 14, 2026), while HUD, the VA, USDA and one mortgage insurer print their own rates, which this page prices on one loan. Each program has its own eligibility rules, so this compares published charges and recommends none.

Every row is our arithmetic on printed rates for one loan, read on agency and insurer pages on October 20, 2026. It is not a quote or a pre-approval. The loan is a 30-year fixed purchase appraised at the price, priced for the first 12 months: a $337,750 base loan for FHA, the full price for VA and USDA, and $332,500 for conventional. An annual charge is a percentage per year of the balance, which HUD bills on the amortization schedule and USDA on the average scheduled balance, so applying it to the starting balance gives a ceiling for those two. Financing an upfront charge adds interest that the table does not price. The government rows are sorted by year-one cost, and the PMI row spans credit scores, so it sits last. At scores of 640 and up, Arch's PMI charge is below every government charge in the table, but only with $17,500 down against $12,250 for FHA and nothing for VA and USDA.

What is mortgage insurance, and why do the four programs charge differently?

Mortgage insurance and guarantee fees repay a lender if a borrower stops paying, and the CFPB says private mortgage insurance (PMI) protects the lender and not you. Fannie Mae says PMI is associated with conventional loans and FHA mortgage insurance with FHA loans. VA and USDA loans carry their own agency fees, covered below.

How much is the FHA mortgage insurance premium?

FHA charges an upfront premium of 1.75% of the base loan amount, the loan before the premium is added, plus an annual premium paid monthly. HUD's handbook says the upfront premium is financed in full or paid in full in cash, and it is not refundable except in a refinance into a new FHA-insured mortgage. The annual rate comes from HUD's table for a term over 15 years and a base loan amount of $726,200 or less:

• Loan-to-value (LTV) of 90.00% or less: 0.50% a year, for 11 years.
• LTV above 90.00% up to 95.00%: 0.50% a year, for the mortgage term.
• LTV above 95.00%: 0.55% a year, for the mortgage term.

The example sits in the last row. A $337,750 base loan is 96.5% of the $350,000 value, the most FHA allows on a purchase, with the minimum required investment of 3.5% that HUD sets. A decision credit score of 580 or higher qualifies for that maximum financing, while 500 to 579 is limited to 90% LTV. Above a base loan amount of $726,200, the figure the handbook prints, the annual rate is 0.70% or 0.75% depending on LTV.

The rates apply to cases endorsed on or after March 20, 2023, under Mortgagee Letter 2023-05. Appendix 1.0 of HUD's Handbook 4000.1, last revised Aug 12, 2026, prints the same table, and HUD's FHA INFO notices 2026-01 to 2026-24, through Oct 8, 2026, list no change to the premium rates.

The weakness is duration. With 3.5% down the annual premium runs the whole term, while 10% down lands in the first row and ends after 11 years. Fannie Mae's page adds that removing FHA mortgage insurance is more complicated than ending PMI and may involve refinancing. A refinance has its own costs: the refinance calculator shows the payment, and our refinance lenders page lists what each lender publishes.

How much is the VA funding fee?

The VA charges a one-time funding fee instead of a monthly premium, and its page says the VA home loan program "doesn't require down payments or monthly mortgage insurance." The fee is a percentage of the loan amount, not the price. The chart, effective April 7, 2023, on a page last updated Oct 5, 2026, reads:

• First use: 2.15% with under 5% down, 1.5% with 5% or more, 1.25% with 10% or more.
• After first use: 3.3% with under 5% down, 1.5% with 5% or more, 1.25% with 10% or more.

With nothing down the first-use fee on the example is $7,525, and the rate after first use makes it $11,550. The fee can be paid at closing or financed. You pay none if you receive VA compensation for a service-connected disability, among other cases the page lists, and a later award that reaches back before closing can earn a refund. Our lender table, read Oct 14, 2026, shows the same first-use rate for Veterans United Home Loans and lists its loan types as VA, USDA, FHA and conventional, and our VA loan lenders page compares more.

The catch is timing: the whole fee is charged at closing, and financing it adds interest.

What are the USDA guarantee fees in fiscal 2027?

USDA Rural Development's notice of Sept 16, 2026 says that for fiscal year 2027, October 1, 2026 to September 30, 2027, the upfront guarantee fee is 1.00% and the annual fee is 0.35%, on purchase and refinance loans alike. Under 7 CFR 3555.107, the lender pays the upfront fee and may pass it to the borrower. The annual fee, capped at 0.5% of the average annual scheduled unpaid principal balance for the life of the loan, may also be passed on.

On the example, the upfront fee paid at closing is $3,500. USDA's handbook works the fully financed case by dividing the base loan by 0.99 and taking 1% of the result, which here is $3,535.35. The annual fee is up to $1,225 in year one, or $102.08 a month if spread over 12 months. Even at that ceiling, USDA's charges total $7,175 after three years of annual fees, still under the VA's single payment. After that the order depends on how fast the balance falls, which depends on an interest rate this page does not assume.

The limits come with the program. The USDA program page describes low- and moderate-income households in eligible rural areas, income that cannot exceed 115% of median household income, a primary residence, and 100% financing under a 90% loan note guarantee. USDA's handbook chapter 16 also describes a separate technology fee that lenders may pass on and refers to USDA notices for its amount, so the USDA row leaves it out. The same chapter says the fees can change to keep the program subsidy neutral, and the annual fee ends only when the guarantee ends.

How much does PMI cost on a conventional loan?

The CFPB says PMI may be required on a conventional loan with a down payment under 20%. The most common form is a monthly premium added to the payment and shown on page 1 of the Loan Estimate, though some loans use an upfront premium on page 2, or both. The CFPB adds that some lenders offer conventional loans without PMI at a higher interest rate, and which costs more depends on several factors, including how long you keep the home.

Insurers set the rate. MGIC's rates page says its risk-based pricing model provides rates tailored to unique loan scenarios and points to its MiQ quote platform, with no rate on the page, while Arch MI publishes a card. Its borrower-paid monthly rate card, effective Feb 9, 2026 and listed on Arch's rate sheets page, is the version for the states not listed separately on Arch's rate sheets page (it excludes AR, DE, GA, IL, MO, ND, NY, OH, RI, VA and WA; GA, ND, NY, OH, RI, VA and WA have their own cards, and the page lists no monthly card for AR, DE, IL or MO), and it says rates are subject to state regulatory approval. For a fixed-rate loan over 20 years at 90.01% to 95.00% LTV, with the 30% coverage the card marks as the Fannie Mae and Freddie Mac standard, the annual rate by credit score is:

• 760 and up: 0.38%. 740 to 759: 0.53%. 720 to 739: 0.66%. 700 to 719: 0.78%.
• 680 to 699: 0.96%. 660 to 679: 1.28%. 640 to 659: 1.33%. 620 to 639: 1.42%. Under 620: 1.99%.

On the $332,500 loan, 0.38% is $1,263.50 a year, or $105.29 a month, and 1.42% is $4,721.50, or $393.46 a month. Under 620 the 1.99% rate is $6,616.75, which is above USDA's ceiling. The card adds to the rate when debt-to-income is above 45% and subtracts when there are two or more borrowers, so a household's own rate can differ from these base rates.

This is one insurer's price list, not the market. Freddie Mac's page says to expect approximately $30 to $70 a month for every $100,000 borrowed, and Fannie Mae says PMI "in 2022 it typically ranged from 0.58% to 1.86% annually." Those are generic ranges, not quotes, and Fannie's is for 2022. Your own figure is on the Loan Estimate.

How does each charge end?

• FHA: the duration column in HUD's table decides, 11 years at 90.00% LTV or less and the mortgage term above that. The handbook's automatic cancellation section covers only case numbers assigned before June 3, 2013.
• VA: nothing to end. The funding fee is paid once, and the VA says there is no monthly mortgage insurance.
• USDA: the lender pays the annual fee until the guarantee ends at maturity, prepayment, foreclosure or a deed in lieu of foreclosure, per USDA's handbook.
• PMI: under the rules the CFPB's cancellation page describes for single-family principal residences closed on or after July 29, 1999, you can ask the servicer to cancel when the scheduled balance reaches 80% of the original value, $280,000 on the example. It ends automatically at 78%, $273,000, if you are current, and at the loan's midpoint, year 15 of 30, at the latest.

A request needs to be in writing, with a good payment history, no junior liens and evidence that the value has not fallen below the original. The CFPB says FHA and VA loans follow different requirements.

When does the order change?

Two things move it. The table is a 0% down comparison for VA and USDA, and the order flips with a bigger down payment: at 10% down on the same home the loan is $315,000, the VA fee at 1.25% is $3,937.50, and USDA publishes no down payment tier, so its ceiling on that loan is $4,252.50 and VA comes out lower. The other is the credit score, which moves the PMI rate on Arch's card across the whole span above. FHA at 10% down moves to the 11-year row.

To price your own numbers, use the mortgage calculator. Lenders differ on which programs they offer, and our pages for Rocket Mortgage, Veterans United Home Loans, Navy Federal Mortgage and Chase Home Lending show what each publishes. The low down payment and first-time buyer hubs group lenders by those terms, and the home loans hub covers the rest. For saving a down payment, see where to put cash in 2026, the best high-yield savings accounts and the rate tracker.

How we compared

We read the HUD handbook and letter, the VA funding fee page, USDA's fiscal 2027 notice, 7 CFR 3555.107 and USDA's handbook, Arch MI's rate card, MGIC's rates page and the Freddie Mac, Fannie Mae and CFPB pages linked above on October 20, 2026. Every dollar figure is our arithmetic on those rates, and agencies and insurers can change a rate at any time. This is general information, not personalized financial advice, and it does not tell anyone to pick a program. Financeradar may earn a commission from some links, and that never affects rankings (how we make money).

FAQ

How much does mortgage insurance cost in 2026?

It depends on the program. On a $350,000 home read on October 20, 2026, USDA is up to $4,725 in year one (1.00% upfront, 0.35% a year), VA is $7,525 on first use, and FHA is up to $7,768.25. Conventional PMI on Arch MI's rate card is $1,263.50 to $4,721.50 on a $332,500 loan for scores of 620 and up, and other insurers set their own rates.

How much is the FHA mortgage insurance premium?

HUD's table charges 1.75% of the base loan amount upfront and, for a term over 15 years and a base loan of $726,200 or less, 0.50% a year at an LTV of 95% or less or 0.55% above 95%. It applies to cases endorsed on or after March 20, 2023, and HUD's handbook, last revised Aug 12, 2026, still prints it. The annual premium is paid monthly.

How long do you pay FHA mortgage insurance?

The annual premium lasts 11 years at an LTV of 90.00% or less and the mortgage term above that. A 96.5% LTV loan pays for the full 30 years in the example. The upfront premium is paid once and HUD does not refund it, except in a refinance into a new FHA-insured loan.

Does a VA loan have mortgage insurance?

No. The VA says its home loan program does not require monthly mortgage insurance or a down payment. It charges a one-time funding fee: 2.15% on a first-use purchase with under 5% down, 3.3% after first use, 1.5% at 5% or more down and 1.25% at 10% or more. People who receive VA disability compensation, among others, pay none.

What is the difference between PMI and MIP, and when does PMI go away?

PMI is private insurance on conventional loans with under 20% down, and its rate comes from the insurer. MIP is FHA's premium, set in HUD's table. Per the CFPB, PMI can be cancelled at 80% of the original value on request and ends automatically at 78% or at the loan's midpoint, while FHA's duration is 11 years or the mortgage term.

Cite this: Financeradar, "How Much Does Mortgage Insurance Cost in 2026? FHA, VA, USDA and PMI Compared", October 2026.