Finance
A Colorado 'VA funding fee' is charged to eligible veteran borrowers to:
APay for the VA's appraisal services
BFund the VA's loan guarantee program and reduce the cost to taxpayers✓ Correct
CCover the lender's origination costs
DPay for the borrower's title insurance
Explanation
The VA funding fee is a one-time charge paid by VA loan borrowers (unless exempt due to service-connected disability) to help fund the VA's loan guarantee program. The fee varies based on the type of loan, down payment, and whether it is the borrower's first VA loan.
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