The VA funding fee is considered a form of mortgage insurance premium. As far as I know, the MIP deduction has not been reinstated for 2020 or 2021. In the past, it has frequently been reinstated by Congress at the last minute, so I don’t think I should make any prediction one way or the other. There is also an income limit; if your income is more than $100,000 ($50,000 if filing married filing separately) the deduction begins to phase out, and is eliminated if your income is more than $109,000 ($54,500 if married filing separately).
