Which of the following applies to a VA-guaranteed loan?

A VA-guaranteed loan includes a funding fee, which is a one-time charge assessed by the Department of Veterans Affairs (VA) when veterans or active military personnel take out a loan guaranteed by the VA. This fee is intended to help offset the cost of the loan program and is not a form of insurance, but rather a requirement specifically related to VA loans. The amount of the funding fee can vary based on several factors including the amount of the down payment and whether it is the borrower's first or subsequent use of the VA loan benefit.

In contrast, MIP (Mortgage Insurance Premium) is associated with FHA loans, and PMI (Private Mortgage Insurance) is typically required for conventional loans when a borrower makes a down payment of less than 20%. Both MIP and PMI are intended to protect the lender in the event of borrower default, and therefore they do not apply to VA loans.

Additionally, while front and back end ratios, which assess a borrower's debt-to-income ratios to determine loan eligibility, are applicable in various loan applications, they are not specific characteristics of VA loans themselves. The unique aspect of VA loans is the funding fee, which distinguishes them from other types of financing.