VA loans require which of the following?

• A. Origination Fee
• B. Appraisal Fee
• C. Funding Fee
• D. Discount Points

Answer: (C)

The funding fee. VA loans include a one-time funding fee charged to help cover the cost of the loan program for taxpayers. This fee is required for most borrowers and can be financed into the loan or paid at closing. The amount varies based on factors like whether it’s the first-time use, whether a down payment is made, and the borrower’s disability status (with exemptions in some cases).

Other items aren’t uniquely required by the VA program. An appraisal is used to establish value and meet property standards, and while it’s a common closing cost, it isn’t a VA-specific mandatory charge. An origination fee isn’t a VA-required item, and discount points are optional and used to buy down the interest rate rather than being a VA requirement.