A veteran in Texas is using VA entitlement for the second time (subsequent use) to purchase a home for $300,000 with no down payment. The VA funding fee for subsequent use with no down payment is 3.30%. If the funding fee is financed, what is the total loan amount?
Correct Answer
C) $309,900
VA funding fee = $300,000 × 3.30% = $9,900. Total loan = $300,000 + $9,900 = $309,900. The subsequent-use rate is higher than the first-time rate.
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