With VA financing, veterans are limited in the closing costs they must pay, but they may still have some costs. Here's how it works:

Closing Costs Veterans Cannot Be Charged:

The VA prohibits lenders from charging veterans certain fees, including:

• Attorney fees (except for title work)
• Prepayment penalties
• Brokerage fees or commissions
• Escrow fees charged by the lender
• Underwriting, processing, and administration fees

Closing Costs the Veteran May Pay:

Some fees are allowed, but they are typically capped or negotiable, such as:

• VA Funding Fee – This is a one-time fee, but it can be financed into the loan. Disabled veterans may be exempt.
• Appraisal Fee – Usually between $500-$800.
• Credit Report Fee – Typically $30-$50.
• Title Insurance and Title Examination Fees
• Recording Fees
• Prepaid Property Taxes and Homeowners Insurance
• Discount Points (Optional to Buy Down Interest Rate)

Who Pays the Other Closing Costs?

• Seller Concessions: The seller can pay up to 4% of the home’s price toward closing costs, including funding fees, prepaid taxes, insurance, or even paying off debt for the veteran.
• Lender Credits: Some lenders may cover closing costs in exchange for a slightly higher interest rate.
• VA Loan Programs & Grants: Some state and local programs (like TDHCA in Texas) offer grants to help with closing costs.

Can VA Buyers Get a No-Closing-Cost Loan?

Yes! Some lenders structure VA loans where they cover closing costs in exchange for a slightly higher interest rate.

Would you like help finding a zero-closing-cost VA loan option or grants to cover them? 🚀