What Are the VA Loan Costs for a VA Loan?

VA loan costs may include a basic funding fee of two percent (2%) must be paid to the Veterans Administration by all first time home buyers but certain exempt veterans as part of the VA costs.

A down payment of five percent (5%) or more will reduce the fee to one and a half percent (1.5%) and a ten percent (10%) down payment will reduce it to one and a quarter percent (1.25%).

All eligible Reserve/National Guard individuals must pay a funding fee of 2.75% as part of their costs. A down payment of five percent (5%) or more will reduce the fee to 2.25% and a ten percent (10%) down payment will reduce it to two percent (2%). The funding fee for loans to refinance an existing VA home loan with a new VA home loan to lower the existing interest rate is 0.5 percent. Veterans who are using entitlement for a second or subsequent time who do not make a down payment of at least five percent (5%) are charged a funding fee of three percent (3%) as part of their VA loan costs.

NOTE: For all VA home loans, the funding fee may be paid in cash or it may be included in the loan.

In addition, reasonable closing costs may be charged by the mortgage company. These costs may not be included in the loan. The following items may be paid by the veteran purchaser, the seller, or shared. Closing costs may vary among companies and also throughout the nation because of differing local laws and customs. Some of the costs may include the VA appraisal, credit report, loan origination fee (usually 1% of the loan), discount points, title search and title insurance, recording fees, state and/or local transfer taxes, if applicable, survey fees.

No commissions, brokerage fees or "buyer broker" fees may be charged to the veteran buyer.

If you have any questions on these VA loan costs or any other fees, please contact me.

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