How should the Buyer's Loan Processing Fee for a VA loan be shown on a settlement sheet?

In the context of VA loans, which are backed by the Department of Veterans Affairs, specific rules govern the allocation of fees, including the Buyer's Loan Processing Fee. Under VA regulations, certain fees can be charged to the seller rather than the buyer, particularly to keep the loan process affordable for veterans.

When the Buyer's Loan Processing Fee is shown on the settlement sheet as paid by the seller, this aligns with the provisions that allow sellers to cover certain transaction costs, supporting the aim of making home purchases accessible for veterans. This practice helps maintain lower out-of-pocket expenses for the buyer, which is a significant benefit of VA loans.

The other choices do not appropriately reflect the acceptable practices regarding VA loan fees. For instance, stating the fee is assigned to the buyer would contradict the supportive measures designed for veterans, while options suggesting payment by the lender or inclusion in closing costs may not adequately highlight the seller's responsibilities under VA guidelines.