c. Itemized Fees and Charges (continued)

In addition, the borrower may not pay a duplicate fee for services that have already been paid for by another party.

Examples: 

·   An appraisal is completed on a property and paid for by a prospective purchaser, but the sale is never completed.  A second purchaser applies for a loan before the validity period of the Notice of Value (NOV) expires.  The lender uses the same NOV.  The lender may not charge the second purchaser an appraisal fee if no second appraisal is ordered.

A survey or flood zone determination, if the lender elects to use an existing survey or flood determination.

d. Lender’s 1% Flat Charge

In addition to the “itemized fees and charges,” the lender may charge the veteran a flat charge not to exceed 1% of the loan amount. 

·   Calculate the 1% on the principal amount after adding the funding fee to the loan, if the funding fee is paid from loan proceeds (except IRRRLs).

·   Note:  For IRRRLs, use VA Form 26-8923, IRRRL Worksheet for the Calculation. 

The lender’s flat charge is intended to cover all of the lender’s costs and services which are not reimbursable as “itemized fees and charges.”