VA Loan Closing Costs: How Much Are They And Who Pays Them?

Mar 12, 2024

5-minute read

Share:

A couple sitting in the living room with their pet dog.

Department of Veterans Affairs (VA) loans allow eligible active-duty service members, veterans, members of the National Guard and Army Reserve, and surviving spouses the opportunity to get into a new home without making a down payment – which VA loans don’t require.

However, that doesn’t mean you’ll be able to close on your house without having any cash on hand. VA loan closing costs are an expense you should be familiar with as you navigate the home-buying process.

What Are VA Loan Closing Costs?

Anytime you use a mortgage to fund a home purchase, you’re going to run into closing costs. Essentially, closing costs are the fees you pay your lender for their assistance in creating your loan.

The term “closing costs” is a broad one used to define a wide range of fees – such as the home appraisal fee and title search fee – that you’ll encounter during the closing process. VA loans include fees specific to this type of mortgage, such as the VA funding fee (which we discuss later).

You’ll pay the closing costs when you’re signing the final paperwork for your home purchase on closing day. At the mortgage closing, you’ll have to bring the money to cover the closing costs required of the loan or roll the costs into your loan.

How Much Are Average VA Loan Closing Costs?

The exact amount you’ll pay in VA loan closing costs will vary based on your lender, the home you choose and the conditions of your loan. However, you should expect closing costs to be 3% – 6% of the loan amount when you buy a house.