A VA borrower purchases a home for $350,000 with 0% down. The VA funding fee for a first-time user with no down payment is 2.15%. What is the total loan amount if the fee is financed?

Correct answer: $357,525

VA funding fee = $350,000 x 2.15% = $7,525. Total loan with financed funding fee = $350,000 + $7,525 = $357,525. The VA funding fee can be financed into the loan amount. Veterans with service-connected disabilities are exempt from the funding fee.