Mortgage insurance, including the VA funding fee, is not deductible on 2017 taxes.
This, from IRS Publication 936, Home Mortgage Interest Deduction:
Amounts charged for services. Amounts
charged by the lender for specific services connected
to the loan aren't interest. Examples of
these charges are:
Appraisal fees,
Department of Veteran’s Affairs (VA) funding
fees,
Mortgage Insurance Premiums,
Notary fees, and
Preparation costs for the mortgage note or
deed of trust.
You can't deduct these amounts as points either
in the year paid or over the life of the mortgage.
