Which veterans are exempt from paying the VA funding fee?
Correct Answer
B) Veterans with 100% disability rating from the VA
Veterans who receive VA compensation for service-connected disabilities rated at 10% or higher, or who would be entitled to receive such compensation but for retirement pay, are exempt from the VA funding fee.
Why This Is the Correct Answer
Veterans who receive VA compensation for service-connected disabilities rated at 10% or higher, or who would be entitled to receive such compensation but for retirement pay, are exempt from the VA funding fee.
More Mortgage Knowledge Questions
A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?
A lender charges a 1% origination fee on all loans. For a borrower obtaining a $250,000 mortgage, what is the maximum origination fee that can be charged without violating the points and fees test under the ATR/QM rule for a first-lien mortgage?
Under what circumstances can a Qualified Mortgage include a prepayment penalty?
A borrower is considering paying discount points to reduce their interest rate. Each point costs 1% of the loan amount and reduces the rate by 0.25%. On a $300,000 loan, how much would the borrower pay for 2 discount points?
A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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A lender charges a borrower 1.5% of the loan amount as an origination fee on a $300,000 loan. What is the origination fee?
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