No, you cannot deduct VA Funding Fees.
From Publication 936 (2018) page 7: Amounts charged by the lender for specific services connected to the loan aren't interest. Examples of these charges are:
- Appraisal fees,
-
Department of Veterans Affairs (VA) funding fees,
- Mortgage insurance premiums,
- Notary fees, and
- Preparation costs for the mortgage note or deed of trust.
You can't deduct these amounts as points either in the year paid or over the life of the mortgage.
