Veterans Mortgage of America is a VA Approved Lender | NMLS ID 3117

Understanding VA Loan Closing Costs: A Guide for Veterans

When using a VA loan to purchase a home, understanding the closing costs involved is crucial for budgeting and planning. VA loans offer several benefits, such as no down payment and no private mortgage insurance, but like any mortgage, there are closing costs to consider. Here’s what veterans need to know about closing costs on a VA loan.

What Are Closing Costs?

Closing costs are fees associated with the purchase of a home. These costs can be broken into permissible fees including a variety of fees charged by lenders and third parties related to the buying process, as well as origination charges that are limited to 1% of the loan amount.

Permissible Loan Closing Costs for VA Loans:

Origination Charges If A 1% Origination Fee Not Charged:

VA Funding Fee

In addition to regular closing costs, VA loans also come with a VA funding fee, which helps fund the VA home loan program. This fee varies depending on several factors including the type of loan, the size of the down payment, and whether the borrower has used a VA loan before. The fee can be financed along with the mortgage or paid in cash at closing.

In conclusion, understanding VA loan closing costs is crucial for any prospective homebuyer utilizing this beneficial program. Join us next week as we delve into the specifics of who can cover these costs, providing clarity and insight to help you navigate the home buying process with confidence. Stay tuned for valuable information that can make a difference in your journey toward homeownership.

Jeff Wilson, President of Military and Veteran Lending  |  615-293-2775  |  [email protected]