Tara is an eligible Veteran receiving VA compensation for a service-connected disability. She is using a VA-backed purchase loan to buy her home. What is the most accurate statement about the VA funding fee?
Correct Answer
D) She may be exempt from the fee because of her disability-compensation status
VA guidance states that certain borrowers, including those receiving VA compensation for a service-connected disability, do not have to pay the VA funding fee. The fee is not universal, and exemption status matters.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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