VA Closing Costs

Can VA closing costs be rolled into a VA mortgage?

Absolutely. When doing a VA Streamline Refinance you can roll 100% of your VA closing costs into your loan and still get a max of $500 cash at closing. On a VA home loan purchase you can have the seller contribute your entire VA closing costs. On VA Cash Out Refinancing the maximum loan amount is 90% so as long as the closing costs are included in the 90% loan-to-value you can roll them in.

Can I close without a down payment and out-of-pocket expenses at closing?

Yes.

VA Closing Costs Table

The table below shows potential fees and charges in addition to the Lender’s 1% Origination Fee.

Charges Description
Appraisal
  • Affairs appraiser’s fee
  • A second (2nd) appraisal only IF it is the veteran who is requesting reconsideration of value. The following applies to other requests for second
    appraisals:

    • The veteran cannot pay for an appraisal when it is the lender or seller who is requesting the reconsideration of value, and
    • The veteran cannot pay for appraisals requested by parties other than the veteran or lender.
Compliance Inspections Compliance inspector’s fee or appraiser’s fee.
Recording Fees The recording fees, recording taxes or other charges incident to recordation.
Credit Report The credit report obtained by the lender.

Note: For Automated Underwriting cases, the veteran may pay the evaluation fee of $50 in lieu of the charge for a credit report. For “Refer” cases, the veteran may also pay the charge for a merged credit report, if required.
Actual discount points Actual discount points
Prepaid Items The portion of taxes, assessments and similar items for the current year and the initial deposit for the tax and insurance account.
Hazard Insurance
  • The required hazard insurance premium.
  • A flood insurance premium, if applicable.
Flood Zone Determination
  • The actual amount charged for a flood certification:
    • Only if made by a third (3rd) party who guarantees the accuracy of the determination.
  • The life of the loan flood determination service purchased at the time of loan origination.

Note: A fee may not be charged for a flood zone determination made by a lender or an appraiser.
MERS Registration Fee
  • A one-time fee, actual basic charge is considered reasonable and
    customary.
  • Must be disclosed on the Good Faith Estimate and the HUD-1.
Survey
  • A survey, if required by the lender or veteran.
  • Any charge for a survey on a condominium must have the prior approval of the Department of Veteran Affairs.
Title Examination &
Title Insurance
  • The title examination and title insurance.
  • An environmental protection lien endorsement to a title policy, if needed.
Special Mailing fees for Refinancing Loans For refinance transactions only: Charges for Federal Express, Express Mail or similar services if the saved per diem interest cost to the veteran will exceed the cost of special handling.
VA Funding Fee Unless exempt from the fee as evidenced by a Verification of VA Benefit Related Indebtedness (VA Form 26-8937).
Other fees authorized by VA
  • Additional fees attributable to local variances may be charged to the veteran only if specifically authorized by the Department of Veteran Affairs.
  • Approval of such fee may be requested if it meets the following:
    • Normally paid by the borrower in a particular jurisdiction, and considered reasonable and customary in the jurisdiction.
Attorney’s fees
  • The veteran can independently retain an attorney and pay a fee for legal services in connection with the purchase of a home.
  • Closing documents must clearly indicate that the attorney’s fee is not being charged by the lender, but is being paid by the veteran as part of an
    independent arrangement with an attorney.

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