A veteran purchases a home in Corpus Christi for $260,000 with a 5% down payment using a VA loan (first-time use). The VA funding fee rate with 5% or more down is 1.50%. What is the VA funding fee amount?
Correct Answer
A) $3,705
Down payment = $260,000 × 5% = $13,000. Loan amount = $260,000 − $13,000 = $247,000. VA funding fee = $247,000 × 1.50% = $3,705. The fee is calculated on the loan amount, not the purchase price.
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