Lets say you buy a home and have a $150,000 mortgage.

Down payment was $15%

I'm trying to determine what's best for my daughter; VA or Conventional:
VA funding fee is 1.25% ($1,875)
PMI would be .44% per year ($660)
She has the money to pay the VA funding fee at closing and not amortize it in the loan.

The broker we're talking to insists conventional is the best loan and VA is "expensive". He claims that the PMI could be dropped in 1.5 years because property values will rise. We're talking Tucson, AZ here...I think he's nuts. It makes me wonder if he gets a bigger commission selling a conventional loan...

If you're in the mortgage business, what do you think?