What is the upfront funding fee for a VA borrower using their entitlement for the first time with a down payment of less than 5%?

What is the upfront funding fee for a VA borrower using their entitlement for the first time with a down payment of less than 5%?

• A. 1.50%
• B. 2.00%
• C. 2.15%
• D. 2.50%

Answer: (C)

For a VA borrower using their entitlement for the first time and making a down payment of less than 5%, the correct upfront funding fee is 2.15%. This fee is part of the VA loan program, which aims to encourage veterans and active-duty service members to purchase homes with favorable loan terms. The upfront funding fee can vary based on several factors, such as the down payment amount and whether it's the borrower's first use of entitlement. In this scenario, since the borrower is utilizing their VA loan benefit for the first time and is not making a down payment, the established rate of 2.15% applies. This percentage is critical because it helps to fund the VA loan program, ensuring its sustainability and support for future veterans. Understanding these specific rates and terms allows borrowers to better navigate financing options under the VA loan program.

For a VA borrower using their entitlement for the first time and making a down payment of less than 5%, the correct upfront funding fee is 2.15%. This fee is part of the VA loan program, which aims to encourage veterans and active-duty service members to purchase homes with favorable loan terms. The upfront funding fee can vary based on several factors, such as the down payment amount and whether it's the borrower's first use of entitlement.

In this scenario, since the borrower is utilizing their VA loan benefit for the first time and is not making a down payment, the established rate of 2.15% applies. This percentage is critical because it helps to fund the VA loan program, ensuring its sustainability and support for future veterans. Understanding these specific rates and terms allows borrowers to better navigate financing options under the VA loan program.