California Real Estate Practice Exam

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Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

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What is the cost to the borrower for a VA loan guarantee of 100% of the property's estimated value?

3.00%
2.15%
1.75%
2.75%

The correct answer is: 2.15%

The cost to the borrower for a VA loan guarantee of 100% of the property's estimated value is 2.15%. This is known as the "funding fee" and is applied to the loan to help reduce the overall cost of the loan for the government. Option A, 3.00%, is incorrect because it is typically the funding fee for regular armed forces borrowers with a zero down payment. Option C, 1.75%, is incorrect because it is typically the funding fee for National Guard and Reserve soldiers. Option D, 2.75%, is incorrect because it is typically the funding fee for regular armed forces borrowers with a down payment of at least 10%. Therefore, B is the correct answer as it is the funding fee for regular armed forces borrowers with a zero down payment.