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

Understanding Who Can Pay VA Closing Costs: A Guide for Veterans

Who Pays What?

The VA has specific rules about which closing costs a veteran is and isn’t allowed to pay. For example, the buyer is not allowed to pay more than 1% of the loan amount for origination charges. However, they can pay the loan fees listed as permissible with no limitation other than those with schedular amounts such as appraisal fees.

In some cases, the seller can agree to pay a portion or all of the veteran’s closing costs as part of the negotiation process. This is known as seller credits and/or concessions and can greatly reduce the cash a veteran needs to bring to closing.

Planning for Closing Costs

It’s essential for veterans to get an estimate of these costs early in the home-buying process. Lenders are required to provide a Loan Estimate form that outlines these costs within three business days of receiving a loan application. Comparing these estimates from different lenders can help veterans find the best deal.


While VA loans offer remarkable benefits, closing costs are still a part of the equation and should be carefully considered. By understanding and planning for these costs, veterans can better manage their finances and make informed decisions when purchasing a home. Remember, every dollar counts when you’re making one of the biggest purchases of your life!

For more information, contact Jeff Wilson, NMLS# 1811820, at 615.293.2775 or [email protected].