Which of the following is not a factor when calculating the VA funding fee?

The reason the number of discount points charged does not factor into the calculation of the VA funding fee is because the funding fee is primarily based on loan specifics rather than the borrower’s elected costs associated with the loan. The VA funding fee is assessed on the loan amount and depends on factors such as the borrower’s veteran status and the purpose of the loan (purchase or refinance).

The funding fee is structured to help offset the costs of the VA loan program and is calculated using the loan-to-value ratio and the borrower's classification as a first-time or subsequent user of VA benefits. Each of these elements relates directly to the structure and support of the loan itself, while discount points are a borrower’s choice about how much they wish to pay upfront to lower their interest rate over time. Thus, discount points remain a separate consideration in the overall loan cost and do not influence the funding fee calculation.