a. General rules (continued)

Subject

Explanation

Section

Funding Fee

The veteran must pay a funding fee to help defray costs of the VA home loan program.

·   Find the percentage appropriate to the veteran’s particular circumstances on the funding fee table.

·   Apply this percentage to the loan amount to arrive at the funding fee.

·   The funding fee may always be financed in the loan.

8 of chapter 8

Closing costs

Those payable by the veteran are limited by regulation to a specific list of items plus a 1% flat charge by the lender.

·   Any other party, including the seller, can pay any costs on behalf of the veteran.

·   Closing costs cannot be financed in the loan except on certain refinancing loans  (See section 7 of chapter 8).

2,4 and 7 of chapter 8

Security Instruments

The lender may use any note and mortgage forms they wish as long as they contain certain VA-required clauses.

1 of chapter 9