When you purchase a home with a VA-backed loan in Florida or Colorado, you will encounter va loan closing costs, which are various fees paid at the close of your home loan transaction. While the VA helps by limiting what you can be charged, these costs are a normal part of buying a home. They typically include items like appraisal fees, title insurance, and recording fees, alongside the one-time funding fee, unless you are exempt. Learn more about the overall process on our VA loans page.
What Are Closing Costs?
Closing costs are the expenses, beyond the property's purchase price, that you pay when you close on a home loan. These costs cover the services required to process and finalize your mortgage. Both the buyer and seller typically pay some closing costs, though specific arrangements can vary. For VA-backed loans, the Department of Veterans Affairs has rules about what costs borrowers can and cannot be charged, which can help manage your out-of-pocket expenses.
VA Loan Specifics for Closing Costs
The VA-backed loan program has unique guidelines regarding closing costs. The VA allows lenders to charge certain "allowable" fees, and it also restricts others, known as "non-allowable" fees, from being passed on to the Veteran buyer. This structure is designed to make homeownership more accessible for service members, Veterans, and eligible surviving spouses.
A key benefit of the VA loan is that it allows for seller concessions up to 4% of the home's sales price. This means the seller can contribute towards your closing costs, pre-paid items, and even certain discount points. The seller can also pay for any non-allowable fees on your behalf. Additionally, you are not required to make a down payment on this loan if you have full entitlement, which can significantly reduce your upfront cash requirement.
The VA Funding Fee Explained
The VA funding fee is a one-time fee paid directly to the Department of Veterans Affairs. This fee helps offset the cost to taxpayers for the VA-backed loan program and reduces the financial burden on the VA. The amount of the funding fee depends on several factors, including your service type, whether it's your first time using your loan benefit, your down payment amount, and the loan type (purchase or refinance).
Who Pays the Funding Fee?
Most borrowers using a VA-backed loan pay the funding fee. However, certain Veterans are exempt from paying it. You are typically exempt if you receive VA compensation for a service-connected disability, if you are a Veteran who would be entitled to receive compensation for a service-connected disability but for the receipt of retirement pay, or if you are a surviving spouse of a Veteran who died in service or from a service-connected disability. (benefits.va.gov)
Funding fee rates are set by law (38 U.S.C. § 3729) and can be changed by Congress, so always confirm the current schedule on VA.gov before you budget. Under the schedule in effect at the time of writing, the purchase-loan funding fee for first-time use with no down payment (assuming full entitlement) is 2.15% of the loan amount. If you've used your loan benefit before, the fee is generally 3.3% with no down payment (assuming full entitlement). A down payment can reduce the funding fee percentage. For example, if you put down 5% or more, the funding fee for a first-time use might drop to 1.5%. (Source: VA funding fee and closing costs.)
You can find a detailed breakdown of current funding fee rates on the VA's website or use a funding fee calculator to estimate your specific cost. The funding fee can be financed into your loan amount, which means you don't have to pay it out-of-pocket at closing, though it will increase your overall loan balance.
Typical Closing Costs for VA Loans (2026)
Even with VA limitations, several closing costs are common for borrowers. These "allowable" fees generally include:
- Appraisal Fee: Paid to an independent appraiser to determine the home's fair market value and ensure it meets VA Minimum Property Requirements (MPRs).
- Credit Report Fee: Covers the cost of pulling your credit history.
- Title Insurance: Protects the lender and you against any issues with the property's title.
- Recording Fees: Charged by local government to record the new deed and mortgage.
- Survey Fee: Required in some cases, especially if there are boundary disputes or new construction.
- Loan Origination Fee: A fee charged by the lender for processing your loan. The VA limits this fee to 1% of the loan amount, which covers most lender-specific charges.
- Discount Points: Fees paid to the lender to "buy down" your interest rate. While not mandatory, they are an allowable fee if you choose to pay them. Note that interest rates can fluctuate based on market conditions, the specific loan program, and the borrower's credit profile and property characteristics. Your Annual Percentage Rate (APR) will reflect the true cost of borrowing over the life of the loan.
- Pre-paid Items: These are not technically closing costs but are typically due at closing. They include items like property taxes, homeowners insurance premiums (hazard insurance), and possibly HOA dues, pre-paid for a certain period after closing. (Source: VA funding fee and closing costs.)
Some fees that are generally "non-allowable" for Veterans to pay include attorney fees (unless required by state law), certain lender-specific fees beyond the 1% origination, and real estate broker commissions. These non-allowable fees can be paid by the seller, absorbed by the lender, or paid by a real estate agent involved in the transaction.
Estimated Closing Cost Table (2026)
Here's an estimated range of common va loan closing costs for a $400,000 VA-backed purchase loan in Florida and Colorado. These are estimates, and actual costs can vary significantly based on location within the state, lender, and specific transaction.
| Closing Cost Item | Estimated Cost Range (Non-Financed) | Notes |
|---|---|---|
| VA Funding Fee (First Use, 0% Down, full entitlement) | $8,600 (2.15% of $400k) | Can be financed into the loan. Exempt for some Veterans. |
| Appraisal Fee | $700 - $1,000 | Varies by property type and location. |
| Lender Origination Fee | $0 - $4,000 (up to 1% of loan) | Max 1% per VA rules. Some lenders charge less or nothing. |
| Title Insurance (Lender's) | $800 - $1,500 | Varies by loan amount and state. |
| Title Insurance (Owner's) | $1,000 - $2,000 | Often negotiable who pays (buyer or seller). |
| Recording Fees | $100 - $300 | Varies by county. |
| Survey Fee | $400 - $800 | Required for some properties, especially in FL. Less common in CO unless new construction. |
| Credit Report Fee | $50 - $100 | Typically a small fee. |
| Flood Zone Determination | $20 - $50 | If property is in a flood zone, flood insurance will also be required. |
| Total Estimated VA Buyer Paid (Excluding Pre-paids & Discount Points) | $11,670 - $18,750 | Does not include pre-paid taxes/insurance or optional discount points. Seller contributions can reduce this. |
Disclaimer: These figures are estimates for 2026 and are for illustrative purposes only. Actual costs will vary based on your specific loan details, location, and individual transaction. For a personalized estimate, please consider a pre-qualification review.
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
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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
Local Market Specifics: Florida vs. Colorado (2026)
While the VA's national guidelines apply to both states, there are local factors that can influence your loan closing costs and overall homeownership experience in Florida and Colorado.
Florida VA Loan Closing Costs
Florida is known for its beautiful coasts and diverse communities. Florida home values are tracked quarterly by the Federal Housing Finance Agency (FHFA) House Price Index, and the statewide index has trended upward in recent years (fhfa.gov). Values fluctuate significantly by region, so treat any statewide figure as a starting point only. For instance, homes in areas near military installations like Naval Air Station Jacksonville or MacDill Air Force Base in Tampa may see robust demand.
- Property Taxes: Florida's property tax rates vary widely by county and municipality. Some areas have relatively lower rates, while others, especially those with strong public services or tourism infrastructure, might have higher millage rates. Check the county property appraiser for the current millage rate on a specific home. You will pre-pay several months of property taxes at closing.
- Title Insurance: In Florida, the seller traditionally pays for the owner's title insurance policy, though this is always negotiable. The buyer typically pays for the lender's title insurance.
- Survey Costs: Surveys are often required in Florida due to complex property boundaries, especially with older homes or properties in planned communities.
- HOA/Condo Fees: Many residential properties in Florida, particularly in popular coastal and metropolitan areas, are part of Homeowners Associations (HOAs) or condominium associations. If you purchase in such a community, you'll have monthly or quarterly HOA dues, and possibly special assessments, which are ongoing costs not included in your mortgage payment. The VA requires that any HOA/condo community you consider must be approved for VA financing.
Colorado VA Loan Closing Costs
Colorado offers stunning mountain landscapes and vibrant cities. Colorado home values are tracked quarterly by the Federal Housing Finance Agency (FHFA) House Price Index, and the statewide index remains among the higher ones in the Mountain West (fhfa.gov). This is a statewide average, with major metropolitan areas like Denver and Boulder often having significantly higher values. Military bases such as Fort Carson and Peterson Space Force Base in Colorado Springs support active housing markets.
- Property Taxes: Colorado typically has lower property tax rates compared to many other states. Check the county assessor for the current mill levy on a specific home. Similar to Florida, you will pre-pay some property taxes at closing.
- Title Insurance: In Colorado, the cost of title insurance can be split between buyer and seller, or one party may pay the entire premium, depending on local custom and negotiation.
- Loan Limits: Veterans with full entitlement have no VA loan limit. If part of your entitlement is still tied to another VA loan, the county conforming loan limit for the year you close is used to calculate how much VA can guarantee without a down payment. Check the current county limit on VA.gov before you make an offer.
- HOA/Condo Fees: Many communities in Colorado, particularly in the Denver metro area and mountain resort towns, are subject to HOA or condo association rules and fees. These fees are an additional monthly or quarterly expense. As in Florida, the community must be VA-approved. For more details on property types and eligibility, visit our requirements page.
Eligibility for a VA Loan
To be eligible for a VA-backed home loan, you typically need to meet certain service requirements established by the Department of Veterans Affairs. This usually involves having served a minimum period of active duty or in the Reserves/National Guard. Your first step is often to obtain a Certificate of Eligibility (COE), which proves to the lender that you meet the VA's service criteria. (va.gov)
Beyond service, lenders will also evaluate your financial readiness. This includes reviewing your credit history, though the VA itself does not set a minimum credit score (lenders do). Lenders will also assess your residual income, which is the amount of discretionary income you have left after paying major monthly expenses and federal, state, and local taxes. This ensures you have enough funds to maintain the home and cover other living costs. Finally, the home you purchase must be your primary residence, meaning you intend to live in it. To understand how your credit might affect your eligibility, consider reviewing our rates page.
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.
When a VA Loan Fits Your Needs
A VA-backed loan is an excellent option for many eligible service members, Veterans, and surviving spouses, especially if you:
- Want to purchase a home with no down payment, assuming you have full entitlement.
- Are looking for competitive interest rates, with the understanding that rates are influenced by market conditions, the specific loan program, and your individual financial profile (APR will clarify total cost).
- Want to avoid monthly mortgage insurance premiums.
- Can benefit from the VA's limits on va loan closing costs.
However, a VA loan might not be the right fit if you prefer to purchase a non-primary residence, such as an investment property or vacation home, as these loans require owner-occupancy. Also, if the property does not meet the VA's Minimum Property Requirements (MPRs), or if you are looking for a very small loan amount where other loan types might be simpler, you might explore other options. If you're interested in understanding your options, you can pre-qualify to see what loan types might work for you. You can also compare these loans to other options on our VA vs. Conventional page.
Ongoing Homeownership Costs
Remember that your mortgage payment is only one part of owning a home. As a homeowner, you will also be responsible for ongoing costs, regardless of your loan type:
- Property Taxes: Paid to your local government, usually collected monthly by your mortgage servicer and held in an escrow account.
- Homeowners Insurance: Required to protect your property from damage; also typically collected via escrow.
- Home Maintenance: Essential for protecting your investment. This includes routine upkeep and unexpected repairs.
- HOA Dues: If your property is part of a homeowners association or condo community, you will pay these recurring fees directly to the association.
Simply Approved Mortgages is a mortgage brokerage (NMLS #2620881) specializing in VA-backed home loans in Florida and Colorado. We are not a lender, the VA, or a government agency. We arrange residential mortgage loans and guide you through the process. If you have questions about your specific situation, explore our VA loan requirements or review our loan types for more details.
Sources
- benefits.va.gov
- fhfa.gov
- VA — VA-backed home loans
- Federal Housing Finance Agency (FHFA) House Price Index
These government publications are 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
- 01Is this guide a loan approval?
No. This guide is educational. Eligibility, loan amount, and terms are decided by the lender after reviewing your Certificate of Eligibility, credit, income, residual income, and the property. It is not a loan approval, a final offer, or a rate quote. For a more precise estimate, a personalized pre-qualification review is recommended.
- 02Who may qualify for a VA-backed loan?
Eligibility is based on service history and confirmed by a Certificate of Eligibility. The home must meet VA Minimum Property Requirements and generally must be occupied as a primary residence. Lenders will also review credit, income, and residual income requirements. Learn more about specific requirements on our VA loan requirements page.
- 03Do borrowers still have homeowner obligations?
Yes. Borrowers must keep paying property taxes, homeowners insurance, HOA dues when applicable, maintain the property, and occupy the home as required. Missing mortgage payments or these obligations can lead to default and, eventually, foreclosure.
- 04Is Simply Approved Mortgages a lender?
Simply Approved Mortgages is a mortgage brokerage, NMLS #2620881. It is not HUD, FHA, or a government agency, and program availability depends on lender, investor, state, and federal requirements. We connect you with lenders who offer VA-backed loans.
- 05Can the VA funding fee be waived?
Yes, certain Veterans are exempt from paying the VA funding fee. This generally applies to Veterans receiving VA compensation for a service-connected disability, those who would be entitled to compensation but for receipt of retirement pay, or surviving spouses of Veterans who died in service or from a service-connected disability. You can confirm your exemption status on your Certificate of Eligibility. (benefits.va.gov)
- 06How can I reduce my out-of-pocket va loan closing costs?
There are several strategies to reduce your upfront VA loan closing costs. These include negotiating with the seller for concessions (up to 4% of the sales price, which can cover many costs), asking the lender to cover certain fees, or financing the VA funding fee into the loan amount. Understanding all your options is key to minimizing out-of-pocket expenses. (Source: VA funding fee and closing costs.)
- 07Are there specific property requirements for VA loans?
Yes, properties financed with a VA loan must meet the VA's Minimum Property Requirements (MPRs). These requirements ensure the home is safe, sanitary, and structurally sound. A VA appraisal determines if the property meets these standards. You can find more details on our requirements page.
Last updated: 2026
