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For many homebuyers in Kitsap County — especially in Silverdale, Bremerton, and Port Orchard — the thought of purchasing a home with less than 20% down seems impossible. Most loans require you to pay private mortgage insurance (PMI) if your down payment is below that mark.
But veterans have a powerful advantage: VA loans come with no PMI — ever. This unique benefit can save local buyers hundreds of dollars each month and tens of thousands over the life of the loan.
Private Mortgage Insurance (PMI) is a monthly fee that protects lenders — not you — if you default on your loan. It’s typically required for conventional loans when you put down less than 20%. Average PMI costs range from 0.3%–1.5% of your loan balance annually. On a $500,000 home, PMI can cost $200–$400 per month. FHA loans charge similar insurance called MIP (Mortgage Insurance Premium), which includes both upfront and monthly fees.
The Department of Veterans Affairs (VA) guarantees a portion of every VA loan. This guarantee protects the lender against loss — making separate mortgage insurance unnecessary.
How it Works:
Here’s how much veterans save compared to FHA and Conventional buyers:
| Loan Type | Down Payment | Monthly PMI/MIP | Total 30-Year PMI Cost | Cancelable? | Notes |
| VA Loan | 0% | $0 | $0 | N/A | Backed by VA, no PMI required |
| FHA Loan | 3.5% | ~$250 | ~$90,000 | ❌ No | MIP lasts for life of loan if <10% down |
| Conv Loan | 5% | ~$320 | ~$115,000 | ✅ Yes (after 20% equity) | PMI can be removed but takes years |
As of 2025:
Kitsap County also has one of the highest concentrations of veterans in Washington State, making VA loans a critical driver of local homeownership.
A veteran purchasing a $550,000 home in Bremerton compared FHA vs VA options. With FHA, monthly MIP added $250/month, totaling ~$90,000 over 30 years. By choosing a VA loan, he paid no PMI and instead financed a one-time funding fee, saving tens of thousands long term.
While the VA funding fee is a one-time cost, PMI continues month after month until 20% equity is reached. If it’s the first time using his/her VA entitlement, A VA buyer pays a funding fee of 2.15% upfront (~$11,825 on $550,000), while a conventional buyer might pay $300/month for ~8 years (~$28,800 total). VA still wins by ~$17,000.
Choosing a VA loan in Silverdale, Bremerton, or Port Orchard isn’t just patriotic — it’s smart economics. You’ll enjoy:
Ready to get started? Contact Clint Edwards today to explore your VA loan options.
Q: Why don’t VA loans have PMI?
A: Because the VA guarantees part of the loan, lenders don’t require additional mortgage insurance.
Q: Does the VA charge any kind of insurance?
A: No monthly insurance. Instead, there’s a one-time funding fee, which may be waived for some veterans.
Q: Can I refinance to remove PMI from an existing loan that is not VA?
A: Yes. A VA cash-out refinance can replace your current loan and eliminate PMI.
Q: Do VA loans really have no down payment?
A: Yes, if your entitlement covers the loan amount (up to $806,500 in Kitsap County for 2025). If you have full entitlement, you may even be able to finance more than the Kitsap County limit of $806,500 while still not being required to place a down payment.
Q: How much can I save without PMI?
A: Typically, $200–$400/month or $80,000+ over the life of the loan. Each person’s situation is unique. Submit an inquiry and I would be happy to review your unique parameters.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.