Can I deduct the FULL amount of the VA funding fee in 2020 as long as I closed on my house in 2020, even if the funding fee was rolled into my loan? The actual guidance is a bit vague, and nothing was included in Box 5 on my 1098. IRS Pub. 936 states "Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. If provided by the Rural Housing Service, it is commonly known as a guarantee fee. The funding fee and guarantee fee can either be included in the amount of the loan or paid in full at the time of closing. These fees can be deducted fully in 2020 if the mortgage insurance contract was issued in 2020."
