Does anyone know if the VA Funding Fee (mortgage insurance) is tax deductible?

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The VA Funding Fee is usually combined with the total amount of the VA Home Loan, it is a form of mortgage insurance (not to be confused with property insurnace).

4 Comments
  1. Reply
    Jeremy B
    February 3, 2011 at 2:34 am

    If this fee is listed on a separate line of your 1098 Mortgage interest statement then yes it should be.
    Most likely, however, it is not.

  2. Reply
    accordingtomom
    February 3, 2011 at 2:49 am

    Yes they can. Very good explanation on page 7 of the IRS publication 936 in regards to this very issue.
    see link below.

  3. Reply
    mypassions4life
    February 3, 2011 at 3:23 am

    Yes it s tax deductible. It will be o your 1098 that the mortgage company will send to you.

  4. Reply
    bostonianinmo
    February 3, 2011 at 3:56 am

    The VA funding fee is fully deductible in the year that you closed on the mortgage, unlike most prepaid insurance fees which must be amortized. If it doesn’t show up on your Form 1098 it is still deductible and will show on your HUD-1 closing statement.

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