Question

Veterans Administration Funding Fee

I purchased a home through VA. Instead of PMI, the VA charges an upfront fee. Is it deductible the same as a PMI? If yes were is it recorded?

Yes, when you report the interest you paid from your 1098, the program will ask if you also paid points or PMI. Answer Yes and enter the amount.

The amount of the funding fee will be added to your Home Mortgage Interest for a possible deduction.

According to the IRS:

"Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee."

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