A veteran is purchasing a $600,000 home with a VA loan and making a voluntary down payment of $50,000. How is the VA funding fee calculated?
Correct Answer
B) Based on the loan amount of $550,000
The VA funding fee is calculated based on the loan amount, not the purchase price. Even with a voluntary down payment, the fee is calculated on the actual loan amount of $550,000.
Why This Is the Correct Answer
The VA funding fee is calculated based on the loan amount, not the purchase price. Even with a voluntary down payment, the fee is calculated on the actual loan amount of $550,000.
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A veteran obtained a VA loan in 2015 with a funding fee of 2.15% for a subsequent use. They are now applying for another VA loan in 2024. What funding fee rate applies?