VA Loan Closing Costs

What Are VA Loan Closing Costs?

VA loan closing costs are the fees and expenses due at the time your VA home loan is finalized, separate from your loan amount. These cover everything from inspections to lender fees.

How Much Are VA Loan Closing Costs?

Closing costs for VA loans typically range from 3% to 5% of the loan amount. Here’s a rough estimate based on common home prices: Home Price Estimated Closing Costs $250,000 $7,500 – $12,500 $350,000 $10,500 – $17,500 $450,000 $13,500 – $22,500 The VA funding fee alone can be up to 3.3% if you're using the benefit for the second time without a down payment. Verify Your VA Loan Eligibility

What Is the VA Funding Fee?

The VA Funding Fee is a one-time payment to help keep the VA loan program running for future veterans. It’s required unless you qualify for an exemption. 2025 VA Funding Fee Rates (with no down payment): First-time use: 2.15% Subsequent use: 3.3% Exempt: 0% (for those with VA disability compensation, Purple Heart recipients, etc.) You can pay this fee upfront or roll it into your loan amount.

Who Pays VA Loan Closing Costs?

Unlike conventional loans, some closing costs cannot be paid by the buyer on VA loans. These are called non-allowable fees. Typically Paid By: Buyer: Funding fee, appraisal, insurance, title fees, prepaid items. Seller or Lender: Non-allowable fees like attorney fees, escrow fees, and loan processing fees (if negotiated) The VA limits how much the buyer can pay in lender fees to no more than 1% of the loan amount.

Can Closing Costs Be Included in a VA Loan?

Yes and No. VA Funding Fee: Can be financed into the loan. Other closing costs: Must be paid out of pocket or covered by seller concessions or lender credits. Verify Your VA Loan Eligibility