How much are closing costs on a VA loan in 2026?

VA loan closing costs in 2026 typically run 2–5% of the loan amount, or $7,000–$17,500 on a $350,000 loan. The biggest cost is the VA funding fee (1.25–3.3% of loan amount), but veterans with 10%+ service-connected disability are completely exempt. Excluding the funding fee, VA closing costs ($3,000–$7,000) are often lower than FHA or conventional because lenders cannot charge many standard fees.

Can the seller pay all closing costs on a VA loan?

Yes — VA allows sellers to pay ALL buyer closing costs plus up to 4% of the loan amount in additional concessions (paying off debt, prepaid expenses, funding fee). This "seller concession" rule is one of the most powerful VA benefits. In a buyer's market, requesting seller-paid closing costs is a realistic negotiation strategy.

What fees are VA lenders NOT allowed to charge?

VA-prohibited fees include: attorney fees for the lender's attorney, escrow/notary fees beyond standard, prepayment penalties, document preparation fees, loan application fees, processing fees beyond $50 (credit check), tax service fees, underwriting fees beyond VA limit, and HUD/FHA inspection fees. These are called "non-allowable" fees — if a lender charges them, you can refuse to pay.

Who is exempt from the VA funding fee?

Veterans exempt from the VA funding fee: (1) Veterans receiving VA compensation for service-connected disability rated at 10% or higher. (2) Veterans who would be entitled to receive compensation but are on active duty. (3) Surviving spouses of veterans who died in service or from service-connected disability. (4) Purple Heart recipients on active duty. Exemption = potential savings of $4,375–$11,550 on a $350,000 loan.

Can I roll the VA funding fee into my loan?

Yes — the VA funding fee can be financed into the loan amount. On a $350,000 purchase with 2.15% funding fee ($7,525), you can roll it into a $357,525 loan. This means $0 out of pocket for the funding fee, though you'll pay slight interest on the financed amount over the loan term.

VA Loan Closing Costs 2026: Full Fee Breakdown

VA Funding Fee Chart 2026 (By Down Payment & Use)

Loan Type / Down Payment	Fee %	On $350K Loan	On $500K Loan
First Use — 0% Down	2.15%	$7,525	$10,750
First Use — 5% Down	1.50%	$5,250	$7,500
First Use — 10%+ Down	1.25%	$4,375	$6,250
Subsequent Use — 0% Down	3.30%	$11,550	$16,500
Subsequent Use — 5% Down	1.50%	$5,250	$7,500
Subsequent Use — 10%+ Down	1.25%	$4,375	$6,250
VA IRRRL (Streamline Refi)	0.50%	$1,750	$2,500
Cash-Out Refinance (First)	2.15%	$7,525	$10,750
Exempt (10%+ Disability)	0%	$0	$0

Source: VA.gov 2026 funding fee schedule. Exempt if receiving VA disability compensation or Purple Heart recipient on active duty.

Complete VA Allowable Closing Costs List (What You CAN Be Charged)

Fee	Typical Cost	Notes
VA Funding Fee	1.25–3.30%	Financed into loan; $0 if exempt
VA Appraisal	$425–$875	Set by VA; varies by state
Credit Report	$50 max	Lender-ordered; capped by VA
Origination Fee	Max 1%	Covers lender profit; negotiate down
Title Insurance	0.5–1%	Lender's policy required; owner's optional
Title Search	$150–$400	Verifies clear ownership chain
Recording Fees	$50–$300	County government fee; non-negotiable
Survey	$150–$700	Only if required in transaction
Flood Determination	$15–$30	Required to determine flood zone
Homeowner's Insurance (1yr)	$1,200–$3,000	Prepaid before closing
Property Taxes (2–6 months)	Varies	Escrowed at closing; get credit at sale
Prepaid Interest	0–30 days	Daily interest until first payment

VA Non-Allowable Fees (Lenders CANNOT Charge These)

If a VA lender charges any of these fees, you have the right to refuse payment or file a complaint:

✗ Attorney fees (for lender's attorney)

✗ Document preparation fee

✗ Loan application fee

✗ Processing fee (beyond $50)

✗ Underwriting fee

✗ Tax service fee

✗ Pre-payment penalty

✗ Escrow fees beyond standard rate

✗ Notary fee (beyond standard)

✗ HUD/FHA inspection fee

Find VA Lenders With the Lowest Fees

Not all VA lenders charge the same fees. Compare origination fees, lender credits, and total closing costs from multiple VA-specialized lenders.

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5 Ways to Reduce VA Closing Costs to Near Zero

Ask seller to pay all closing costs. VA rules allow sellers to pay 100% of buyer closing costs plus up to 4% in additional concessions. In a buyer-friendly market, request this in your offer. On $350K, seller could cover $7,000–$14,000.
Roll the funding fee into the loan. Financing the 2.15% fee ($7,525 on $350K) into your loan costs you an extra ~$42/month at 6.5% — but eliminates $7,525 cash at closing.
Negotiate lender credits. Accept a slightly higher interest rate (0.125–0.25% higher) in exchange for $2,000–$5,000 in closing cost credits. Ask VA lenders about this trade-off.
Verify disability exemption. If you have any service-connected disability, check your VA rating BEFORE closing. Even 10% disability = $0 funding fee. That's $4,375 savings on $350K at first use.
Use a VA IRRRL to refinance later. When rates drop, the VA IRRRL (streamline refinance) has a 0.5% funding fee and can often be completed with no out-of-pocket costs.

VA vs FHA vs Conventional: Closing Cost Comparison on $350K

Cost Item	VA Loan	FHA Loan	Conventional
Down Payment	$0 (0%)	$12,250 (3.5%)	$10,500–$70K (3–20%)
Funding Fee / MIP	$7,525 (2.15%)*	$6,125 UFMIP (1.75%)	$0 (20%+ down)
Monthly PMI/MIP	$0	$200–$350/mo	$100–$250/mo (if <20%)
Origination Fee	Max 1% ($3,500)	1% ($3,500)	0.5–1% ($1,750–$3,500)
Appraisal	$425–$875	$500–$800	$400–$700
Title + Other	$2,000–$4,000	$2,000–$4,000	$2,000–$4,000
Total Upfront*	$12,450–$15,900	$24,375–$26,675	$14,750–$78,200

*VA funding fee can be financed — reducing cash at closing to ~$5,000–$7,000 for title/escrow costs only. Exempt veterans = $0 funding fee.

Shopping multiple VA lenders is the single highest-ROI action you can take. Origination fees alone vary from $0 to $3,500 on the same loan. Compare VA-specialized lenders here — takes 10 minutes and can save thousands.

VA Loan Closing Costs 2026: Who Pays What (Full Fee Breakdown)

Key VA Closing Cost Facts