I just found by pure luck, the 2020 version of IRS Publication 936 at https://www.irs.gov/pub/irs-pdf/p936.pdf on page 7 seems to make it clear when you can deduct the fees in full the first year, and when you have to spread the deduction out over the life of the loan (not the MACRS life of the property.)
It also clarifies where the funding fee can come from (as part of the down payment for example).
If you use the FIGURE B on page 6, that tends to make it simpler I think, to know what path you should take.
There's a specific way to enter this in TurboTax so it's done correctly. It's important to enter it correctly so that in the future when things change such as selling the property you can easily deduct the remaining amount left in the year of the change that allows for this without having to go around your elbow to get to your thumb to make it happen.
Please read through the section "Deductions allowed in year paid" which starts in the first column on page 7 and the bottom of that column. From what I see, there's really no reason I can find that item #6 under that section could not be applied, thus allowing you to fully deduct the points in the year you closed on the property. (That's the route I would take.)
