VA Loan Closing Costs 2026 | Average Fees & Who Pays
Typical VA loan closing costs and fees
A down payment is not required on VA loans. However, VA loan closing costs still apply, and the borrower is responsible for them unless someone else agrees to pay.
Borrowers on VA home purchase loans paid median total loan costs of $7,530 in 2023, according to the Consumer Financial Protection Bureau (CFPB). That is about 2.2% of the $341,000 median VA purchase loan that year, and prepaid taxes and insurance come on top of it.
You can pay them out-of-pocket or receive seller credits and/or lender credits to cover them.
Check your VA home buying eligibility. Start here (Nov 4th, 2026)
In this article:
- How to avoid paying closing costs out of pocket
- Our recommended VA lenders
- What are closing costs?
- How much are VA loan closing costs?
- VA loan closing costs FAQ
- More information about VA loans
How to avoid paying VA loan closing costs out of pocket
Closing costs, also called closing fees, include a variety of charges that make buying a house possible.
They cover everything from the mortgage lender’s administrative fees to getting a head start on next year’s property taxes and insurance premiums.
Check your VA mortgage rates. Start here (Nov 4th, 2026)
Traditionally, it’s the homebuyer’s job to pay most of a loan’s closing costs, but it is possible for VA borrowers to avoid these expensive charges by:
Asking the seller for credits and concessions
The VA loan program lets the seller pay some or all of your normal closing costs, and the VA sets no limit on those credits. However, seller concessions can’t exceed 4 percent of the home’s reasonable value, as shown on the VA Notice of Value. Concessions include paying your VA funding fee, prepaying your taxes and insurance, or paying off your debts. The seller isn’t required to pay any of these.
If you’d like the seller to help cover your closing costs, be sure to let your real estate agent know before you negotiate a purchase contract.
Applying for closing cost assistance
A local closing cost assistance program in your area could help. These programs vary a lot by location.
Some programs offer forgivable loans or grants that could cover your closing fees; others can lend money for closing costs at no interest but you’d have to repay the loan when you sold, refinanced, or paid off your home.
Ask your loan officer about programs in your area, or just Google “local closing cost assistance.”
Financing the funding fee, or closing costs on a refinance
On a purchase loan, you can finance only the VA funding fee into the loan amount, and you must pay other fees and charges at closing. An energy efficient mortgage can also add the cost of energy improvements. Refinances differ: A VA Streamline Refinance (IRRRL) can include allowable closing costs in the loan, and a VA cash-out refinance can pay them from the cash proceeds.
But financing these costs will add to your loan amount and total interest due over the life of the loan.
Asking for lender credits
Your lender could help pay closing costs in exchange for charging you a higher mortgage rate over the life of your loan.
Basically, lender credits are a tradeoff: You’ll get upfront relief in exchange for higher long-term costs.
What are VA loan closing costs?
Closing costs pay for a lot of the professional services you’ll need to transition into homeownership. We’ll go into more detail below, but here’s a quick overview of your VA loan closing costs:
Check your VA home buying eligibility. Start here (Nov 4th, 2026)
Common fees you may see at closing
- VA funding fee: This one-time fee helps pay to maintain the VA home loan program
- Loan origination fee: Private lenders charge this fee to pay for their administrative services
- Discount points: You have the option to buy down your interest rate by paying for discount points at closing
- VA appraisal fee: To finalize a loan, the lender has to find your new home’s value through an independent appraisal and that the property value is congruent with the sale price
- Inspection fees: A VA appraisal is not a home inspection, so VA suggests you may wish to get one. New construction can also need VA compliance inspections
- Title report fees: The loan process includes a title search to determine whether anyone else can claim ownership of the home. You’ll have the option to buy title insurance which can help settle future title claims if any arise
- Recording fee: Your local government will charge this to record your home purchase
- Credit report fee: Your lender pays a small fee for running your credit, and it passes the fee along to you
- Flood certification fee: This will determine whether your new home is located in a flood zone; if it is, you’ll need to get special flood insurance
- Survey fee: In many areas, a surveyor will come out and mark the boundaries of your new property so you’ll know exactly what you’re buying
- Attorney’s fee: An attorney you hire on your own can manage and organize the details of your real estate transaction. A lender generally can’t charge you for this
- Prepaid items: You may need to pay part of your local property taxes or annual homeowners insurance premiums upfront; these charges will be worked into your monthly payment in future years
Why your list of fees may look different
Not every loan will require every cost. For example, if you’re getting a VA streamline refinance for your current VA loan, you may skip the appraisal fee because the VA doesn’t require an appraisal on this refinance. A lender may still require one.
Some closing costs, like the VA funding fee and the loan origination fee, depend on your total loan amount while others are flat fees on any loan amount.
We’ll take a closer look at the various types of closing costs in the next section.
How much are VA loan closing costs?
VA loan closing costs had a median of $7,530 on home purchase loans in 2023, based on CFPB data for total loan costs. That figure covers the borrower-paid share of lender and third-party charges, including discount points. It leaves out prepaid items and anything the seller paid. Part of the reason VA closing costs vary so much is that the VA funding fee can be anywhere from 0.5% to 3.3% of the loan amount, depending on your loan type, down payment and prior VA loan use. Some borrowers pay no funding fee at all.
Check your VA mortgage rates. Start here (Nov 4th, 2026)
Below is a rundown of the fees on a VA loan and what sets each amount. Keep in mind the types of fees and their amounts vary greatly by geographic location. Your scenario might look very different.
The best way to get a better estimate is to talk to a loan professional about your situation and review your Loan Estimate. But the following will give you a general idea of potential costs.
We’ll break the closing costs down into three categories:
- VA and lender fees
- Third-party fees
- Pre-paid and prorated charges
VA mortgage fees and lender fees
The VA limits the amount of fees the lender can charge. This is a great benefit of this type of loan.
VA and VA-authorized lending fees include:
VA funding fee
- Amount: Percentage of loan amount
- Paid to: The Department of Veterans Affairs
This fee goes directly to the U.S. Department of Veterans Affairs to defray the costs of the VA loan program.
For a borrower using a VA loan for the first time and putting down less than 5%, the VA funding fee is 2.15% of the total loan amount. That rate has applied since April 7, 2023. So on a $200,000 home with no down payment, 2.15% equals $4,300.
Borrowers who have used a VA loan before pay a higher fee, 3.3%, when they put down less than 5%. However, refinances through the VA Interest Rate Reduction Refinance Loan (IRRRL) require only a 0.5% funding fee. You can also pay a lower fee by making a down payment of 5% or higher.
But you don’t have to pay this fee out of pocket. VA homebuyers can choose to finance this fee into their loan amount. In that case, it doesn’t increase out-of-pocket costs for the veteran or active-duty military service member, although it does add to the loan balance.
National Guard and Reserve members pay the same rates as other veterans. You won’t pay this fee if you receive VA compensation for a service-connected disability, or are eligible for it but receive retirement or active-duty pay instead. Surviving spouses who receive Dependency and Indemnity Compensation (DIC) are also exempt. So are service members with a proposed or memorandum disability rating before closing. Also, active-duty service members who show proof of a Purple Heart on or before the closing date won’t have to pay this fee.
First-Time Use Purchase & Construction Loans
| Down Payment | Veteran/Active Duty | Reservist/Nat. Guard | Eligibility |
| Less than 5%* | 2.15% | 2.15% | Check Eligibility |
| 5% to 9.99% | 1.5% | 1.5% | Check Eligibility |
| 10% or more | 1.25% | 1.25% | Check Eligibility |
*A VA cash-out refinance pays this 2.15% rate on first use, whatever the home’s equity. All rates on this page apply to loans closed on or after April 7, 2023, and before June 9, 2034.
Second-Time Use Purchase & Construction Loans
| Down Payment | Veterans/Active Duty | Reservist/Nat. Guard | Eligibility |
| Less than 5%* | 3.3% | 3.3% | Check Eligibility |
| 5% to 9.99% | 1.5% | 1.5% | Check Eligibility |
| 10% or more | 1.25% | 1.25% | Check Eligibility |
*A VA cash-out refinance pays this 3.3% rate after first use, whatever the home’s equity.
VA Streamline Refinance / IRRRL (Interest Rate Reduction Refinance Loan)
| Type of Loan | Veteran/Active Duty | Reservist/Nat. Guard | Eligibility |
| First-time Use | 0.50% | 0.50% | Check Eligibility |
| Second-time Use | 0.50% | 0.50% | Check Eligibility |
Check your VA home buying eligibility. Start here (Nov 4th, 2026)
For detailed information about the funding fee, visit our funding fee page.
Loan origination fee
- Amount: Can’t exceed 1% of the loan amount
- Paid to: The VA-authorized private lender
The VA caps the lender’s compensation on VA loans to 1% of the total loan amount. This flat charge should compensate the lender in full. Fees for items such as processing and underwriting can’t be charged to the veteran on top of it.
For a $200,000 home loan, 1% equals $2,000.
Check your VA mortgage rates. Start here (Nov 4th, 2026)
Discount points
- Amount: One point equals 1% of the loan amount. The rate drop per point depends on the lender, the loan and the market
- Paid to: The VA-authorized private lender
Discount points let the borrower pay cash up front for a lower mortgage rate for the life of the loan. This is optional, but it can save money if you keep the home loan long enough to benefit from the lower rate.
Discount points don’t count toward the 1% maximum origination fee because this money is used to buy a lower interest rate rather than to compensate the lender.
You can’t finance discount points into your loan amount on a purchase. A VA Streamline Refinance can include up to two points in the loan, while a VA cash-out refinance can pay reasonable points from the loan proceeds. For an in-depth look at origination fees and discount points, see our Discount Points article.
Third-party fees
Companies (other than the lender and homebuyer) that are involved in the transaction are called third parties.
Examples are title and escrow companies, credit reporting agencies, and appraisers. Their charges are called third-party fees. Here are common fees and what sets their amounts.
Appraisal
- Amount: Set by the VA by state and county. In the VA fee table effective May 1, 2026, the single-family fee runs from $650 to $1,500
- Paid to: Passes through the lender to the appraiser
The lender will request an appraisal straight from the VA website, and the VA will then select an approved VA appraiser.
The VA appraiser will determine the value of the home as well as ensure it meets minimum property requirements for VA loans.
If you are using a VA streamline to refinance your home, the VA does not require an appraisal, so this fee may not apply. However, a lender can still require one. If your lender is requiring an appraisal on a VA streamline refinance, you can shop around for another lender.
Check your VA home buying eligibility. Start here (Nov 4th, 2026)
Title Report/Title Insurance Policy
- Amount: Varies widely with the price, the loan amount and the location
- Paid to: Passes through the lender to the service provider
This fee varies greatly because it depends on the purchase price of the home, the loan amount, and geographic location.
As a result, the title fee on a small purchase price will generally be lower than the fee on a high purchase price.
The title report and title insurance protect the lender and owner of the home in case someone claims ownership rights to the house, and wins in a court of law. If that were to happen for any reason, the title insurance company would reimburse the lender and owner of the home for the loss.
There are generally two types of title fees:
- The lender’s title policy that protects the lender
- The owner’s policy that protects the future owner
In some areas, the seller of the home pays for the owner’s title policy, and the buyer pays the lender’s policy. But it depends on local customary practice.
Generally, the owner’s title policy is more expensive. In some cases, the buyer pays for both the owner’s policy and the lender’s policy, in which case the title fee more than doubles.
For instance, if the lender’s title policy is $450 and the owner’s title policy is $650, and the buyer has to pay them both, it would turn out to be a $1,100 fee. Make sure your purchase and sale contract defines which parties are paying which fees so there are no surprises at the end.
Recording Fee
- Amount: Varies widely by county or city
- Paid to: County or city government
The county or jurisdiction where the home is located sets this fee. “Recording” means that the sale or refinance becomes public record so that the county knows who is responsible to pay taxes on the home and which banks have loans out on the home.
Credit Report Fee
- Amount: The actual charge for the report, with no lender markup
- Paid to: Passes through the lender to the service provider
The lender must pull a credit report to determine your past credit history. The report usually shows three credit scores from the major credit bureaus: Experian, Equifax, and TransUnion. Many lenders use the middle score for qualification purposes.
If you’re wondering if you can qualify for a VA loan with your credit score, contact us here.
Flood Certification
- Amount: The actual charge of a third party that guarantees the result. A lender can’t charge for its own determination
- Paid to: Passes through the lender to the service provider
The lender will pull a flood certification, or “flood cert,” on the property to determine whether it’s in a flood zone. If it is, you will need to purchase flood insurance (see “Prepaid Items” section below).
Survey Fee
- Amount: Varies with the property and the area
- Paid to: Passes through the lender to the surveyor
A company will survey the property to show you where all physical property lines are on the property. Many areas of the country don’t typically require this unless there are property line disputes or questions about boundaries. You can pay for a survey when the lender or you require one.
Attorney Fees
- Amount: Set by the attorney you choose
- Paid to: Your attorney
Attorneys can help in negotiating and interpreting the sales contract as well as help with a timely closing. Not every state requires them. In states that do, it’s best to call around and find an attorney who knows real estate and is not too expensive.
Note that a lender generally can’t charge the veteran for an attorney’s services other than title work. You can still hire your own attorney under a separate arrangement and pay the fee yourself. VA’s State Fees and Charges Deviations List (February 17, 2026) also allows an attorney fee in Delaware, Illinois, Massachusetts and New York.
Prepaid items
Prepaid items are those that the buyer pays in advance. Lenders require insurance policies and taxes to be paid when the home purchase closes.
Unpaid taxes and insurance can lead to the home being seized by the government or destroyed by fire without compensation, both of which are bad for the lending bank (and you).
Flood Insurance
- Amount: Depends on the home’s flood risk and its cost to rebuild
- Paid to: Insurer
This is an ongoing insurance policy, paid every year, on any home that is located inside a flood zone. The lender requires the home to be insured against flooding, which is not covered by the standard homeowner’s insurance policy.
You will pay the policy’s first-year premium at closing, which could add quite a bit to your upfront cash requirement. National Flood Insurance Program pricing looks at flood risk and the cost to rebuild, so it can vary greatly.
If the property is in a flood zone, determine the yearly premium and have that much extra on hand by the time you close the loan.
Check your VA mortgage rates. Start here (Nov 4th, 2026)
Homeowner’s insurance
- Amount: Varies with the home, its location and the insurer
- Paid to: Insurer
This is the standard insurance policy that protects against perils like fire, trees falling on the home, tornadoes or other natural disasters.
This insurance policy will not cover flooding and may or may not cover earthquake-related damage. The cost depends on the home being insured. The full year’s premium will usually be due at closing.
The lender requires this prepayment because they want to make sure any damage done to the home will be repaired. Homeowner’s insurance is just like any insurance policy: It renews every year and will need to be paid again each year.
Usually, the lender collects 1/12th of the yearly premium with the mortgage payment and pays the insurance company for you yearly.
Check your VA home buying eligibility. Start here (Nov 4th, 2026)
Escrow deposit
- Amount: Varies with your taxes, your insurance and the closing date
- Paid to: Escrow account managed by the mortgage company
Your mortgage loan servicer will set up an escrow account to collect your property tax and insurance premiums gradually over the course of each year. This one-time fee creates an adequate opening balance for your new escrow account.
This fee varies greatly because it depends on:
- The taxes and insurance rates on the home
- The time of year the sale closes
- When taxes are collected in the property’s jurisdiction
This money “primes the pump” so to speak so that when your property taxes and insurance come due, there’s enough in reserve to pay them.
To best plan for this upfront expense, you’ll need to get an estimate from your loan professional after the property is chosen and an estimated closing date is established.
Check your VA mortgage rates. Start here (Nov 4th, 2026)
Fees not allowed to be charged to the veteran
The Department of Veterans Affairs seeks to protect VA homebuyers from exorbitant fees. VA loan program guidelines bar lenders from charging some fees.
Related Article: Lowering Your Payment with a VA Streamline Refinance
Additional attorney fee
The VA loan program generally won’t allow a lender to charge the homebuyer for an attorney’s work other than title work. However, the seller or a Realtor can pay an attorney for additional services, and you can pay an attorney you hire independently.
Escrow fee
The VA generally does not allow the veteran to pay an escrow fee. Instead, the lender covers it from the 1% flat charge. The escrow fee varies greatly and can be quite expensive, so this is a great benefit to the VA loan.
Although the veteran does not pay for the escrow fee, it’s good to know what the escrow company does.
The escrow company simplifies a real estate transaction by collecting and spending money on behalf of everyone involved.
For example, instead of paying your earnest money directly to the seller, you’ll pay the escrow company. At the right time, the escrow service will forward your payment onto the seller.
In addition, the escrow company makes sure all parties sign all the final loan documents and sale documents. When it’s all said and done, the escrow company sends documents to the county or jurisdiction to record the sale.
Check your VA home buying eligibility. Start here (Nov 4th, 2026)
Closing Protection Letter (CPL)
The CPL fee is often included in the escrow fee but is sometimes charged separately. It is a letter that makes the title company responsible if escrow does not appropriate loan proceeds correctly. The veteran can pay this fee only where VA’s deviations list allows it: Alabama, Arkansas, Delaware, Florida, Illinois, Indiana, Mississippi, New Jersey, Ohio and Pennsylvania, as of February 17, 2026.
Document preparation fee
The fee charged by escrow for preparing final loan documents generally can’t be passed on to the VA homebuyer. VA’s deviations list makes an exception for a document preparation fee paid to an attorney in Texas.
Underwriting fee (processing fee)
In addition to the loan origination fee, lenders tend to charge processing and underwriting fees. The VA won’t allow lenders to charge these fees. Instead, all lender fees must be included in the 1% loan origination fee the VA does allow.
Lock-in fees
Lenders normally charge a small fee to lock in an interest rate in the days or weeks before closing on the loan. The VA won’t let lenders pass this fee along to its homebuyers.
Real estate commissions
The VA won’t let buyers pay the seller’s agent. Buyer’s agents are different. Since August 10, 2024, VA Circular 26-24-14 has let veterans pay reasonable and customary buyer-broker charges, under a temporary variance that is valid until rescinded.
Conditions apply. The home must be in an area where listing brokers can’t set buyer-broker pay through multiple listing posts, or where that pay can’t be set by or flow through the listing broker. In addition, the loan amount can’t include the charge, and the lender counts it when checking that you have enough cash to close. The seller can still pay these charges, and VA doesn’t treat that as a seller concession.
Termite letter
This fee is no longer off limits. VA’s deviations list lets veterans pay for a wood destroying pest inspection where the VA Notice of Value requires one, along with repairs needed to meet Minimum Property Requirements. You can still ask the seller to pay for it.
Check your VA mortgage rates. Start here (Nov 4th, 2026)
Courier fee/postage fees
Sometimes there are original documents that need to be hand-carried or sent via overnight service, and can’t be emailed or faxed. In this case, the escrow company will often charge a courier fee to ensure these services are paid for.
On a purchase loan, however, the veteran is not allowed to pay these fees, so the lender must cover them. On a refinance, the veteran can pay for special mailing when the interest saved will exceed the cost.
Notary fees
Fees charged by the escrow company to send a notary to the borrower for a signing appointment somewhere other than the escrow company’s office.
Application Fee
This is a fee the lender sometimes charges upfront before it takes an application. This is not allowed on VA loans.
When you apply for a VA home loan, VA rules require the lender to cover any application cost from its 1% flat charge.
Tax service fee
This fee is paid to the mortgage company to ensure they pay the real estate taxes.
Mortgage broker fee
Sometimes charged by mortgage brokers when they broker a loan out to the lender.
This list of allowable and non-allowable fees above is not all-inclusive and there may be other fees on your purchase transaction that are not listed here. In that case, it’s best to contact your VA lender to find out if the charge is allowable on VA loans. VA’s deviations list also allows some otherwise barred fees in certain states.
VA loan closing costs FAQ
How much are closing costs on a VA loan?
CFPB data show a median of $7,530 in total loan costs on VA home purchase loans in 2023, before prepaid items. Costs vary widely because some closing fees are flat while others are charged as a percentage of your loan amount. Even with the VA funding fee, this loan program is still likely to be a great option compared to FHA and conventional mortgage programs.
Check your VA home buying eligibility. Start here (Nov 4th, 2026)
What is the VA funding fee?
The VA funding fee helps pay for the VA loan program. The fee helps lower the cost of the program for U.S. taxpayers, since VA loans don’t require a down payment or monthly mortgage insurance.
Will I have to pay a VA funding fee?
You’ll pay the VA funding fee unless you’re exempt. Exemptions cover veterans who receive VA compensation for a service-connected disability (or would, but receive retirement or active-duty pay instead) and surviving spouses who receive DIC. Service members with a proposed or memorandum rating before closing are exempt too. So are active-duty Purple Heart recipients who show proof on or before closing.
How can I avoid closing costs on a VA loan?
You can’t avoid closing costs, but you may avoid paying them out of pocket by asking for seller credits or lender credits, or by applying for an assistance program. On a purchase loan, you can finance only the VA funding fee.
Why do sellers hate VA loans?
The VA protects homebuyers from excessive costs by limiting the fees they can pay and setting property standards. Sometimes sellers interpret the VA’s regulations as too complex or restrictive. However, this should not deter homebuyers who qualify for the VA loan benefit from using it.
More questions about paying VA closing costs
What closing cost can a VA buyer not pay?
In general, a VA buyer can’t pay lender’s fees beyond 1% of the loan amount, the seller’s agent’s commission, or attorney fees charged by the lender beyond title work. A temporary VA variance lets buyers pay their own agent, with conditions. Some states also have exceptions.
What credit score is needed for a VA loan?
The VA doesn’t set a minimum credit score but lenders can. Each lender sets its own minimum, so the score you need can vary from one lender to another.
Can a VA loan be denied?
Yes, a lender can deny a VA loan application. The VA guarantees part of each loan, making them more attractive to private lenders. But the VA can’t require a lender to approve a loan.
Can you roll closing costs into a VA loan?
Not on a purchase loan. There, you can finance only the VA funding fee (and the cost of energy efficiency improvements). A VA Streamline Refinance can include allowable closing costs and up to two discount points, while a VA cash-out refinance can pay them from the loan proceeds.
Can a VA buyer pay their own closing costs?
Yes, VA homebuyers can pay their own closing costs within rules set by the Department of Veterans Affairs. For example, buyers can’t pay the seller’s agent’s commission, and a lender generally can’t charge them attorney fees beyond title work.
Does the VA cover closing costs?
The VA does not pay closing costs on behalf of borrowers, but homebuyers can apply for closing costs assistance through local programs.
Who pays closing costs on a VA loan?
Homebuyers are responsible for paying closing costs, but they can negotiate with the seller, who can pay some or all of them with no VA limit. VA caps seller concessions, a separate category, at 4% of the home’s reasonable value. Closing cost assistance programs and lender credits can also help. Or, the borrower can finance the VA funding fee into the home loan amount.
How can I get more information about VA home loans?
A good way to find out if you may qualify to buy a home with a VA loan is to request a rate quote. Your Certificate of Eligibility (COE) confirms your VA loan eligibility.
Check your VA mortgage rates. Start here (Nov 4th, 2026)
Here are some links to additional information:
Source: VA Handbook
