Finance
A 'VA funding fee' is charged to VA borrowers because:
AThe VA insurance premium
BIt helps fund the VA loan guarantee program, partially offsetting the cost to taxpayers✓ Correct
CIt replaces the down payment requirement
DIt is a lender origination fee required by the VA
Explanation
The VA funding fee is a one-time charge that helps offset the cost of the VA loan guarantee program. It varies by down payment, first-time vs. subsequent use, and loan type. Disabled veterans are exempt.
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