How Much Are Closing Costs on a VA Loan?

If you’re a veteran looking to purchase a home using your VA loan, you may be wondering how much you’ll need to pay in closing costs. Here’s a look at what you can expect.

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There are many factors to consider when taking out a loan, and one of the most important is the closing costs. Veterans Affairs (VA) loans are no different, and closing costs can add up quickly.

The good news is that VA loans often have lower closing costs than other types of loans, and there are several ways to get even lower costs. In addition, the VA offers a funding fee that can be rolled into the loan, which can help with upfront costs.

Let’s take a closer look at VA loan closing costs and how to get the lowest possible costs.

What are closing costs?

Closing costs are fees paid by the buyer at the closing of a real estate transaction. The fees are paid to cover various services and expenses related to the purchase of the property, and they are typically 2-5% of the purchase price.

There are a number of different fees that can be included in closing costs, but some of the most common are loan origination fees, appraisal fees, title insurance, and escrow or attorney fees. VA buyers are also responsible for paying for a VA funding fee, which is a one-time fee that helps to cover the cost of the VA loan program.

Closing costs can be paid by the buyer or seller, or they can be split between the two parties. In some cases, the lender may also agree to pay some or all of the closing costs. It’s important to talk to your lender about all available options before making a decision on who will pay the fees.

When you’re applying for a VA loan, it’s important to ask your lender for a good faith estimate (GFE) of all anticipated closing costs. This document will give you an idea of how much you can expect to pay in fees, and it can help you compare different lenders.

How much are closing costs on a VA loan?

On average, closing costs for a VA loan are around 1-3% of the loan amount. However, this number will vary depending on a number of factors, such as the lender you use, the state you live in, and the type of loan you get.

For example, if you’re getting a VA loan in Texas, you can expect your closing costs to be higher than if you were getting a VA loan in another state. This is because Texas requires lenders to charge a higher origination fee on VA loans.

If you’re looking to get a VA loan with the lowest possible closing costs, there are a few things you can do. First, make sure to shop around and compare rates from multiple lenders. Each lender will have their own set of fees and charges, so it’s important to compare apples to apples.

Second, consider asking the seller to pay some or all of your closing costs. This is known as a “seller concession” and is negotiable in most cases.

And finally, remember that VA loans come with an “upfront funding fee.” This fee can be rolled into your loan amount or paid out-of-pocket at closing. The amount of the fee depends on factors like your down payment amount and whether or not you have previous VA loans.

How to avoid paying too much in closing costs

There are a few things you can do to avoid paying too much in closing costs on your VA loan.

The first is to shop around. There are a lot of different lenders out there and they all have their own fees and charges. You should get quotes from a few different lenders to compare costs.

The second is to ask the lender to waive or reduce some of the fees. Some fees are mandatory, but others are negotiable. Ask the lender if they are willing to waive or reduce any of the fees charged.

The third is to get an estimate of the closing costs from the seller. In some cases, the seller may be willing to pay a portion of the closing costs. This is something you will need to negotiate with the seller.

By following these tips, you can avoid paying too much in closing costs on your VA loan.


Closing costs on a VA loan vary depending on the type of loan you have, where you’re buying property and which lender you use. However, you can often get a good estimate of what your closing costs will be by asking your real estate agent or lender for an estimate. You can also check with the Veterans Administration to see if there are any special programs or grants that can help cover your closing costs.

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