Can I claim and therefore deduct a VA (Veterans Affairs) Funding Fee for my rental property that I refinanced?

[MinhT1]

The VA funding fee is considered as a mortgage insurance premium and as such is deductible as mortgage insurance 

Please read this IRS document for more information.

[Carl]

What you are calling a funding fee, is mortgage insurance. I've seen it listed two ways on the closing statement, and on the 1098-Mortgage Interest Statement.

On the closing statement it can be shown as PMI (Private Mortgage Insurance) or MIP (Mortgage Insurance Premium). It's deductible and gets included with (added to) the deductible mortgage interest.

On the 1098 it will be in box 5 of that form.