Last updated: October 24, 2026
A VA purchase loan generally takes between 30 and 45 days from purchase contract to closing, though exact timing depends on appraisal scheduling, underwriting speed, and title work. Total out-of-pocket costs vary based on your down payment, local taxes, and negotiated seller concessions. While the benefit allows for $0 down payment for eligible buyers with full entitlement, buyers must still account for the funding fee, lender fees, and prepaid escrow reserves. Down payment, rate, APR, and repayment terms (for example, a 30-year fixed-rate loan repaid in monthly installments) depend on your eligibility, credit, and the lender's approval.
Understanding these milestones and expenses helps you navigate your purchase with confidence.
Upfront costs when buying a home with a VA loan
Although eligible buyers can purchase a primary residence without a down payment, this loan is not completely free of closing expenses. When you buy a home, your transaction costs fall into three main buckets: lender fees, third-party charges, and prepaid escrow items.
The U.S. Department of Veterans Affairs sets strict rules on what borrowers can be charged. Lender origination charges are capped at 1% of the loan amount, which covers the lender's administrative and processing overhead. Additionally, the VA maintains a list of non-allowable fees that lenders cannot charge directly to the Veteran, such as separate document preparation charges or loan application fees. The funding fee can be paid at closing or financed into the loan. (Source: VA funding fee and closing costs.)
Third-party costs include the VA appraisal fee, credit report charges, title examination, lender's title insurance, and local recording fees. Because closing costs vary significantly by region, state-specific taxes also impact your cash requirements. For example, buyers financing homes in Florida encounter state documentary stamp taxes on the mortgage note (administered by the Florida Department of Revenue), whereas Colorado transactions involve distinct recording fees and county property tax schedules. You can read more about state-level expenses in our guide to VA loan closing costs in Florida and Colorado.
Finally, buyers must fund prepaid escrow items at settlement. These funds cover upcoming property taxes, homeowners insurance premiums, and any required HOA transfer assessments. Ongoing property taxes, insurance, association dues, and regular maintenance remain your responsibility as a homeowner.
The VA funding fee: percentages and exemptions
Most buyers using a VA-backed purchase loan pay a one-time funding fee, which reduces the program's cost to U.S. taxpayers. The fee amount depends directly on your down payment and whether you have used your loan benefit before. For purchase loans, buyers putting down less than 5% pay 2.15% for first-time use and 3.30% for subsequent use; putting down 5% to 9.99% reduces the fee to 1.50% for either use; and a down payment of 10% or more lowers the fee to 1.25% for either use, as detailed on VA.gov. (Source: U.S. Department of Veterans Affairs, VA funding fee and closing costs.)
You have the option to pay this fee out of pocket at closing or finance it directly into your total loan balance. Figures in this example are illustrative for education only. They are not an offer of credit, not a quote, and no rate, APR, payment, or fee is being advertised. Actual terms depend on lender underwriting, your Certificate of Eligibility, and pricing available at the time of application.
Certain borrowers are fully exempt from paying the funding fee ($0). You qualify for an exemption if you receive or are entitled to receive VA compensation for a service-connected disability, if you received a disability rating from a pre-discharge review, if you are an active-duty Purple Heart recipient, or if you are an eligible surviving spouse. Your Certificate of Eligibility (COE) confirms your exemption status before closing. You can review detailed qualifying criteria in our breakdown of who is exempt from the VA funding fee.
If you are planning an upcoming purchase, our team can help you review your entitlement and structure your financing through our standard VA purchase loan program.
Get your VA Pre-Approval Summary.
Complete the short form and we send back a full VA breakdown: your entitlement, the VA funding fee, and an estimated $0-down monthly payment — with no mortgage insurance, ever.
- Your entitlement and county loan limit (if applicable)
- $0 down payment — no mortgage insurance, ever
- One-time VA funding fee, financeable into the loan
- Estimated monthly payment with taxes and insurance
Summary emailed and shown on screen · Not an approval or commitment to lend
Illustration only, generated from the information you enter. Not a Loan Estimate, pre-qualification, commitment to lend, or approval. Subject to appraisal, credit and income review, VA guidelines, and final lender approval. Not affiliated with, endorsed by, or sponsored by the U.S. Department of Veterans Affairs. Equal Housing Opportunity.
- Purchase price
- $385,000
- Down payment
- $0
- Base loan amount
- $385,000
- Financed funding fee (2.15%)
- $8,278
- Est. monthly payment
- $2,690
Sample figures · Simply Approved Mortgages · NMLS #2620881 · Equal Housing Opportunity
Calculating your cash requirements at closing
To see how down payments, lender charges, and prepaid taxes impact your overall figures, you can test different scenarios using the calculator on this page.
Here is a worked example to illustrate how closing costs and the funding fee function on a home purchase:
- Purchase price: $400,000
- Down payment: $0 (0% down, full entitlement)
- Base loan amount: $400,000
- funding fee (first use, <5% down): 2.15% ($8,600, financed into loan)
- Total loan amount: $408,600
- Estimated third-party fees and lender charges (1.5% assumed): $6,000
- Estimated prepaid taxes and homeowners insurance: $3,500
- Estimated out-of-pocket cash required without concessions: $9,500 (Source: U.S. Department of Veterans Affairs, VA funding fee and closing costs.)
Under program rules, the seller can contribute seller concessions up to 4% of the reasonable property value to cover items like prepaid property taxes, insurance, or the funding fee, on top of customary closing costs. In this scenario, a negotiated seller concession could potentially cover the $9,500 in settlement costs, allowing the buyer to close with zero out-of-pocket expense beyond their initial earnest money deposit. (Source: U.S. Department of Veterans Affairs, VA funding fee and closing costs.)
Step-by-step VA loan purchase timeline
From signing a purchase contract to receiving your keys, a VA purchase loan follows a clear sequence of milestones. While local conditions influence timelines, the process generally moves through the following stages:
``` Contract Accepted ➔ Initial Disclosures ➔ Appraisal & Underwriting ➔ Conditional Approval ➔ Closing Disclosure ➔ Final Signing (Days 1–3) (Days 4–7) (Days 8–21) (Days 22–28) (Days 29–35) (Days 35–45) ```
Days 1 to 7: Loan setup and disclosures
Once the seller accepts your purchase agreement, you submit the executed contract to your mortgage broker. The loan file is opened, your COE is confirmed, and your broker sends out the initial loan estimate and disclosures. You will provide income documentation, bank statements, and tax returns for processing as outlined on our underwriting checklist.
Days 8 to 21: Appraisal ordering and underwriting review
Your file moves to underwriting with an approved wholesale lender partner, and the lender orders the VA appraisal through the VA's electronic portal. A VA-assigned independent appraiser evaluates the property to establish its fair market value and verify compliance with Minimum Property Requirements (MPRs), which protect buyers by checking that the home is safe, sanitary, and structurally sound.
Days 22 to 30: Clearing conditions and appraisal review
The underwriter issues a conditional loan approval detailing any remaining documentation needed. Concurrently, the appraiser submits the appraisal report. If the appraiser suspects the value will come in below the contract price, they may invoke the Tidewater initiative, giving the buyer and seller two business days to submit additional comparable sales. Once the appraiser or staff underwriter issues the Notice of Value (NOV), any required property repairs must be addressed.
Days 31 to 45: Final approval, Closing Disclosure, and settlement
Once all underwriting conditions, title searches, and property inspection requirements are satisfied, the underwriter issues a final clear to close. Federal regulations enforced by the Consumer Financial Protection Bureau require that you receive your Closing Disclosure (CD) at least three business days before you sign final paperwork. On closing day, you sign your mortgage notes, funds are wired, and title is transferred.
Related VA Home Loan Resources
VA home purchase calculator: run your own numbers
Edit the fields to see your down payment, financed one-time VA funding fee, and full monthly payment. VA loans allow $0 down and carry no monthly mortgage insurance.
Estimates only. Nothing here is an application, pre-qualification, pre-approval, rate quote, rate lock or commitment to lend. You can keep using this tool without giving us anything.
Estimates only — not a loan offer, rate lock, or commitment to lend. Taxes, insurance, and rates vary by county and credit profile.
Related reading
- VA Loan Programs We Offer And How To Choose Between Them
- Who The VA Interest Rate Reduction Refinance Loan (IRRRL)
- Documents You Need For A VA Interest Rate Reduction Refinance
- Costs And Timeline Of A VA Interest Rate Reduction Refinance
- VA IRRRL Waiting Periods: How Soon Can You: Complete VA
Sources
This government publication is cited for VA-backed loan program background and general consumer education. Simply Approved Mortgages LLC (NMLS #2620881) is a mortgage broker and is not HUD, FHA, or the CFPB, and is not affiliated with or endorsed by any government agency.
Frequently asked questions
- 01How long does a VA purchase loan take to close?
A VA purchase loan generally takes between 30 and 45 days from the time a fully executed contract is submitted. Delays typically stem from scheduling the VA appraisal, negotiating repairs required by Minimum Property Requirements, or resolving title defects.
- 02Can the seller pay all of my closing costs on a VA purchase?
The seller may pay customary closing costs, and program guidelines allow sellers to provide concessions up to 4% of the reasonable property value. Concessions can pay for items like prepaid taxes, insurance, or the funding fee. (Source: U.S. Department of Veterans Affairs, VA funding fee and closing costs.)
- 03What fees is a buyer not allowed to pay on a VA loan?
The VA prohibits lenders from charging Veterans certain itemized fees if the lender charges a 1% origination fee. Prohibited charges include separate fees for document preparation, underwriting, loan processing, and attorney fees representing the lender.
- 04How does the VA appraisal impact the purchase timeline?
The appraisal assignment is managed directly through the VA panel rather than standard private appraisal management networks. The appraiser must visit the property, evaluate Minimum Property Requirements, and produce a Notice of Value. This process commonly accounts for 10 to 18 days of the overall closing timeline.
- 05Can I roll my regular closing costs into the VA purchase loan?
Standard closing costs—such as title charges, escrow fees, and prepaid insurance—cannot be added into the purchase loan balance. Only the one-time funding fee may be financed above the purchase price. However, you can negotiate for the seller to pay standard closing costs on your behalf.
- 06What happens if the VA appraisal comes in lower than the contract price?
If the appraisal indicates a value lower than the purchase price, the appraiser invokes the Tidewater procedure to request additional market data. If the final Notice of Value remains low, you can request a Reconsideration of Value (ROV), renegotiate the purchase price with the seller, pay the difference out of pocket, or cancel the contract without losing your earnest money under the VA Amendatory Clause.
- 07Does making a down payment speed up the VA closing timeline?
Making a down payment does not alter the underwriting timeline or shorten the closing process. Every VA loan must fulfill the same appraisal, title, and underwriting requirements regardless of whether you put 0% or 10% down. A down payment does, however, reduce your required funding fee and overall monthly mortgage payment. (Source: U.S. Department of Veterans Affairs, VA funding fee and closing costs.)
