Which of the following is a characteristic of the VA funding fee?

The VA funding fee is a nonrefundable fee that helps to sustain the VA loan program and keep it available for future veterans and active-duty military personnel. This fee is assessed on the loan amount and is intended to reduce the cost of the loan for taxpayers while allowing veterans to obtain loans without needing to make a down payment or secure private mortgage insurance.

Being nonrefundable means that once the fee has been paid, it will not be reimbursed under any circumstances, even if the loan is paid off or refinanced. This feature distinguishes the VA funding fee from other potential fees or deposits that might be refundable. It's important for borrowers to understand this aspect when budgeting for the overall cost of obtaining a VA loan.

The characteristics of other options clarify the scope of who the funding fee applies to: it is charged to veterans and active-duty military members, though some exemptions may apply based on certain service-connected disabilities. Thus, stating the fee is nonrefundable accurately reflects a key aspect of the VA funding fee and its implications for borrowers.