is the VA funding fee considered points for tax purposes

[MarianneC2]

No, VA funding fees are not considered points for tax purposes. They are considered amounts that are charged by a lender for specific services connected to the loan; but they aren't points. 

In the paragraph Amounts charged for services on page 9 of IRS Publication 936 (2025), the IRS explains that specific services connected to a loan are not interest. Therefore, these amounts are not deductible as interest or points. 

Publication 936 lists the following non-deductible charges as examples:

Department of Veteran Affairs (VA) funding fees

Appraisal fees

Mortgage insurance premiums

Notary fees

Preparation costs for mortgage note or deed of trust

[Opus 17]

The VA funding fee is a type of mortgage insurance.  Unfortunately, the deduction for mortgage insurance was removed some years ago.