A line-by-line VA cash-to-close estimate — lender charges, title and government fees, prepaid items, escrow reserves, the funding fee, and seller concessions. VA loans allow $0 down and never carry monthly mortgage insurance.
No-obligation VA pre-qualification review.
VA closing costs typically run 2–5% of the purchase price, plus a one-time funding fee (2.15% first use with less than 5% down, or 1.25%–1.50% with 5%+ down) that can be financed into the loan. Lender origination is capped at 1% and certain fees cannot be charged to you at all. Separately from the customary closing costs a seller may always pay, the seller can add concessions worth up to 4% of the reasonable value, and the funding fee is $0 for exempt veterans.
Budget 2–5% of the price plus the funding fee (unless exempt), then use seller concessions to bring most of that back out of your pocket.
Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 31, 2026 against the VA Lenders Handbook (M26-7)
Estimate my cash to closeEstimates 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.
Fee amounts for underwriting, appraisal, survey, settlement and recording are typical market figures and vary by lender, state and property. Transfer taxes and title rates differ widely by county. Your Loan Estimate is the binding disclosure. There is no monthly mortgage insurance on a VA loan.
VA allows interested parties (the seller, builder, or real estate agent) to contribute up to 4% of the property's reasonable value toward closing costs, prepaid expenses, discount points and the funding fee — on top of the customary closing costs a seller can always pay without limit. Because VA purchases are $0 down, there's no minimum required investment restricting how the concession can be used.
Accepting a slightly higher interest rate produces a lender credit that offsets closing costs. It raises the monthly payment, so it works best when you plan to refinance or sell within a few years.
A VA purchase requires no down payment at all, so the cash question is closing costs alone. State and local housing-agency assistance, lender credits priced into the rate, and seller concessions of up to 4% of value can each be applied to those costs — often the difference between closing this month and saving for another year.
VA permits 100% of closing costs to come from a documented gift from a family member, employer, labor union, close friend with a clearly defined interest, or an approved government or charitable entity. The donor signs a gift letter and the transfer must be traceable.
Your Loan Estimate lists services you can shop for — title, settlement, survey and pest inspection in most states. Those line items vary by hundreds of dollars between providers.
On a VA loan the lender's own origination charge is capped at 1% of the loan amount. A lender may either take that flat 1% or itemize specific charges within it, but not both. Discount points paid to buy the interest rate down sit outside the 1% cap and are negotiable.
The VA Lenders Handbook (M26-7, Chapter 8) also lists fees a veteran may never be charged, including lender attorney fees, loan-broker or finder fees, prepayment penalties, and most settlement or escrow charges that fall outside the itemized allowable list. Those costs move to the lender or the seller — they cannot be shifted to you.
Third-party costs you can be charged include the VA appraisal and credit report, title and title insurance, recording fees, survey where required, hazard insurance, and prepaid interest and escrow reserves.
The funding fee is a one-time charge paid to the VA, not a lender fee, and it replaces monthly mortgage insurance entirely. On a purchase it is 2.15% of the loan amount on a first use with less than 5% down, 1.50% with 5% or more down, and 1.25% with 10% or more down. Subsequent use with less than 5% down is 3.30%. An IRRRL is 0.50% and a cash-out refinance is 2.15% on a first use.
Veterans receiving VA disability compensation, those rated eligible for it, Purple Heart recipients serving on active duty, and certain surviving spouses owe $0. The fee can be financed into the loan instead of paid in cash, which is what most borrowers do — see the funding fee calculator for your exact figure.
VA closing costs typically run 2% to 5% of the purchase price, plus prepaid items and escrow reserves. They include lender fees, appraisal, title insurance, recording and transfer taxes, prepaid interest and homeowner's insurance, and an initial tax and insurance escrow deposit.
Yes, if the purchase contract provides for it. VA's 4% limit applies to seller concessions such as paying the funding fee, prepaid items, or certain debt—not to the seller's payment of ordinary closing costs or discount points. The appraisal and lender must still support the transaction, and a credit cannot exceed actual allowable costs.
It is a closing cost, but most veterans finance the funding fee into the loan amount instead of paying it in cash, so it does not increase the money due at the closing table. VA loans never carry monthly mortgage insurance, so there is no MIP or PMI in the calculation at all.
Start a VA pre-qualification with a licensed loan originator. Licensed in Colorado and Florida.
SAM is the Simply Approved Mortgages AI assistant, grounded in the VA Lenders Handbook M26-7, 38 CFR Part 36 and the county loan-limit file behind this page. It answers general VA questions. A licensed mortgage loan originator reviews every scenario before any terms are confirmed.
Hi — I'm SAM with Simply Approved Mortgages. Ask a question about VA loan closing costs, or pick one of the popular questions beside this box.
AI assistant — general VA loan education only, not financial, legal or tax advice, not a loan approval, pre-approval or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) is an independent mortgage broker and is not the VA, HUD or any government agency, and is not endorsed by them. All loans are subject to lender underwriting, appraisal and final approval. Equal Housing Opportunity.
Hand-picked pages that answer the questions most people have after reading this one.
Related VA topics for this page — tap any question to jump straight to the answer.
The VA funding fee schedule sets the one-time cost that replaces mortgage insurance on every VA loan. Here's the current chart, who's exempt, and how it's financed.
A VA loan can finance up to a 4-unit property with $0 down, as long as you live in one unit. Rent from the other units can even help you qualify.
Veterans receiving VA disability compensation pay $0 funding fee — often the single biggest savings in the entire loan. Here's how the exemption is proven and refunded.
Follow our mortgage and VA updates on Google. If you use Google Search, you can add Simply Approved Mortgages as one of your preferred sources. Google decides what appears in Search; selecting a preferred source only records your own preference and is not an endorsement by Google or the VA.
Twice-a-month updates for buyers and homeowners: rate movement, VA guideline changes, funding-fee and entitlement updates, and the deals we're closing. No spam, unsubscribe anytime.
VA rate updates, market trends, and program changes. No spam.
By submitting this form you consent to receive VA rate, market and program update emails from Simply Approved Mortgages LLC at the address provided. Consent is not a condition of any purchase or of obtaining credit, and this is not an application. We do not autodial, call or send SMS/text messages to newsletter subscribers. Message frequency varies; unsubscribe any time. Read our Privacy Notice.
