Is a VA funding fee added to the loan at closing tax deductible?
The guys over at http://blog.oregonlive.com bring up an important question to consider.
Q: Is a VA funding fee added to the loan at closing tax deductible?
A: The following information comes from IRS Publication 936:
Mortgage Insurance Premiums
You can treat amounts you paid during 2009 for qualified mortgage insurance as home mortgage interest. The insurance must be in connection with home acquisition debt, and the insurance contract must have been issued after 2006.
Qualified mortgage insurance.
Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006).