Are VA Funding Fees Deductible when buying a new home?

  • where do i put my VA funding fees on these forms? where?
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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 2012 if the mortgage insurance contract was issued in 2012. Contact the mortgage insurance issuer to determine the deductible amount if it is not reported in box 4 of Form 1098.

  • Just to clarify, does this mean you should contact the Department of Veterans Affairs to receive an IRS form to deduct the funding fee?
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