For which type of property is the VA Funding Fee applicable?

The VA Funding Fee is specifically applicable to primary residences when a veteran utilizes a VA loan to finance their home purchase. This fee is designed to help reduce the cost of the loan to taxpayers since the VA doesn't require mortgage insurance. The fee can be rolled into the loan amount and varies depending on factors such as whether it is the borrower's first use of a VA loan and the length of service of the veteran.

Other property types, such as investment properties or second homes, are not eligible for VA financing, and therefore the VA Funding Fee would not apply. The purpose of the VA Funding Fee is to provide funding for the VA loan program, which is intended to facilitate home ownership for veterans and active duty service members, reinforcing the focus on helping them secure primary residences.