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Bill & Sarah applied for a VA loan to purchase a property for $158,000. The property appraised at $157,000. They agreed to pay a 1/2 % loan origination fee. How much will they pay in origination fees?

1 Answer

5 votes

Answer: $785

Explanation:

A VA loan is a mortgage loan program established by the United States department of veteran affairs. The main objective of VA loans is to assist veterans,

Eligible surviving spouses and service members to have their own houses.

In many states, property tax reduction are offered to veterans including other additional benefits.

The appraised value is the value of a property as determined by the loan underwriting team.

VA loans are made on appraised value

Therefore, The origination fee of 1/2% equals :

(0.5/100) * $157,000 = $785

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