VA Loan Closing Costs: What You Pay and What You Don't

Closing costs are the fees you pay to finalize a mortgage, and VA loans have some borrower-friendly rules about which ones you can — and can't — be charged. Here's what to expect.

What closing costs are

Closing costs are the collection of one-time charges due when your loan closes. On any mortgage they can include:

• Loan origination charges from the lender
• Appraisal and credit report fees
• Title insurance and title search fees
• Recording fees and transfer taxes
• Prepaid items like property taxes and homeowners insurance

Costs you typically do pay

With a VA loan, you'll generally still be responsible for standard items such as the appraisal, title work, recording fees, and any prepaids your lender collects to set up your escrow account. Many borrowers also pay the one-time VA funding fee, though it's commonly rolled into the loan — see our funding fee guide.

Costs the VA won't let you pay

The VA protects borrowers by prohibiting certain charges. For example, you generally cannot be charged for:

• Attorney fees charged by the lender
• Real estate commissions
• Certain broker or "junk" fees

There's also a limit on the origination charge a lender can collect, which keeps lender fees in check.

The seller concessions advantage

VA rules allow the seller to pay many of your closing costs. In fact, sellers can contribute toward costs and, within limits, add concessions like paying down your funding fee or prepaying taxes. This is something to negotiate in your offer, and a VA-savvy agent can help.

Can you roll costs into the loan?

The funding fee can usually be financed into the loan, but most other closing costs cannot simply be added to the balance on a purchase. Instead, buyers often cover them with seller concessions, lender credits (in exchange for a slightly higher rate), or cash at closing.

Estimating your costs

Closing costs vary by lender, location, and price, so avoid fixed dollar assumptions. Your lender must give you a Loan Estimate early on that spells out expected fees, and a Closing Disclosure before you sign. You can also explore rough scenarios with our calculators.

Where this fits in the journey

Closing is the final step of the process — for the full sequence, see our loan process guide.

The bottom line

VA loans limit and shift many closing costs in the borrower's favor, but you'll still have some to plan for. Reviewing your Loan Estimate line by line — and negotiating seller help — is the best way to keep them manageable. This article is educational only; only the VA and a VA-approved lender can confirm the exact costs and terms that apply to you.