Final answer:
In a VA loan transaction, all the fees listed are permissible except for the Document preparation fee, which VA regulations typically disallow lenders from charging to veterans.
Step-by-step explanation:
All of the following are allowable fees for a VA loan transaction, EXCEPT: A) Appraisal fee. B) Funding fee. C) Credit report fee. D) Document preparation fee. When discussing a VA loan transaction, it's important to note that the Department of Veterans Affairs, which oversees the VA loan program, has regulations in place concerning allowable and non-allowable fees. In this context, the non-allowable fee is D) Document preparation fee. Document preparation fees are generally considered part of the closing costs that a lender charges for processing the paperwork associated with a mortgage, and in the context of a VA loan, lenders are not allowed to charge veterans for document preparation.