This form is just "boilerplate," a form that everyone who applies for one of these government-backed loans completes. You are not getting an FHA loan if you apply for a VA loan. And you will know that for the following reasons:
1. FHA does not back 100 percent loans
2. FHA does not charge a funding fee (which can be rolled into your loan, if you choose not to pay it out-of-pocket)
3. FHA DOES charge an upfront mortgage insurance premium of 1.75 percent, as well as monthly mortgage insurance premiums. VA is a much better deal.
If you are not approved for the loan, the addendum lists what the lender must do to inform you of this. You will not be charged any funding fee or mortgage insurance premiums unless you are approved for the loan and actually purchase / refinance the property using that loan. If you are concerned about this, don't pay the fee upfront. Just roll it into the loan, and pay the balance down after closing. If you really think they will keep your money.
But they won't.