FinancingGovernment_backed_loansMEDIUM
A veteran purchases a home for $400,000 using a VA loan with no down payment. The VA funding fee for a first-time use with zero down is 2.15 percent. If the veteran finances the funding fee, what is the total loan amount?
Correct Answer
D) $408,600
VA funding fee = $400,000 × 2.15% = $8,600. Total loan = $400,000 + $8,600 = $408,600. The funding fee is financed into the loan amount.
Answer Options
A
$400,000B
$412,000C
$391,400D
$408,600Why This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
VA_loanfunding_feecalculationno_down_paymentfinancing
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