Cost of VA guarantee on loan

A VA guarantee made on a loan of 100% of the estimated value of the property costs the borrower:

  1.  1.25%
  2.  1.50%
  3.  2.15%
  4.  Nothing.

The answer is C – on no down payment loans for veterans who are using this benefit for the first time, they will have to pay a fee of 2.15% to pay for some part of the cost of the benefit and also reduce the cost to taxpayers.

For first time users, no down payment requires a 2.15% fee, up to 10% down payment requires a 1.5% fee, and 10% or more requires a 1.25% fee.