VA Closing Costs

Closing Costs for VA Loans

The closing costs for purchasing a home are a part of any home buying venture. Closing costs include fees for surveying, title insurance and examination, as well as processing and mailing services. Yet another benefit to the VA Loan Program is that lenders may charge a 1% flat rate to VA Loan recipients, but no more than that.

VA Loan 1% Closing Cost Limitation

The VA Loan Program has defined a maximum 1% flat rate that lenders can charge VA Loan recipients. Reasonable discounts are available as well. This closing cost limitation of 1% is still an enormous improvement over the typical 3-5% closing cost fees that borrowers have to pay with conventional loans.

The 1% flat charge comes from the lender, or the financial institution through which the VA Loan comes from, not the VA itself. This 1% rate covers VA closing costs, like escrow, preparation and processing fees and lender inspections and appraisals.

VA Loan Closing Cost Inclusions

Closing costs encompass a variety of different aspects of finalizing a home-buying deal, including but not limited to:

  • A Credit Report
  • Home Appraisals
  • Recording Fees
  • The VA Funding Fee
  • Title Examination
  • Title Insurance
  • Hazard Insurance, including Flood Insurance if necessary
  • Prepaid Items; and
  • Compliance Inspections

Minimizing Closing Costs

All the stipulations and considerations surrounding closing costs and VA Loans can get quite confusing. As an experienced VA Loan company specializing in getting the best VA Loans possible for veterans, we know how to keep the closing costs as low as possible.

Many veterans mistakenly believe that closing costs are entirely covered by VA Loans, and this is not the case. With our proven methods, we often get the closing costs down to zero, but the VA Loan Program has capped the closing costs to VA Loan users at 1%. We often arrange with sellers to pay the closing costs so you don't have to.

Special Closing Cost Provisions

A few specialized closing cost provisions apply in certain circumstances, such as closing costs for:

  • Repairs
  • Home Improvements
  • New construction; and
  • Alterations and changes to the existing home