FinancingLoan_typesMEDIUM
Owen is using a VA-backed purchase loan for the first time. He is not exempt from the funding fee. He is buying a $400,000 home and making a 5% down payment. Using the current VA purchase-loan funding-fee chart, how much is the funding fee?
Correct Answer
B) $5,700
The correct funding fee is $5,700. Step 1: Calculate the loan amount: $400,000 − (5% × $400,000) = $400,000 − $20,000 = $380,000. Step 2: For a first-time VA purchase loan with a down payment of 5% or more, the applicable funding-fee rate is 1.5%. Step 3: $380,000 × 0.015 = $5,700.
Answer Options
A
$6,000B
$5,700C
$8,170D
$8,600Why This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
va_loansfunding_feeloan_mathdown_payment
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