1. What Are VA Loan Closing Costs?

VA loan closing costs are fees associated with finalizing your mortgage. While VA loans typically have lower closing costs than conventional loans, they still include lender fees, title fees, appraisal costs, and other charges.

2. How Closing Costs Are Calculated

The calculator uses this simple formula:

Typical VA Loan Closing Costs Include:

• Lender Fees: Origination fees, discount points, underwriting fees
• Title Fees: Title search, title insurance, settlement fees
• Appraisal: Required VA appraisal fee
• Insurance: Homeowners insurance, flood insurance if required
• Taxes: Property taxes, recording fees
• Other Fees: Credit report, VA funding fee (if applicable)

3. VA Loan Closing Cost Benefits

Key Advantages:

• VA limits what lenders can charge for certain fees
• No mortgage insurance required
• Sellers can pay up to 4% of closing costs (including VA funding fee)
• Lower origination fees than conventional loans

4. Using This Calculator

Instructions: Enter each cost component in dollars. The calculator will sum all fees to provide your estimated total closing costs.

5. Frequently Asked Questions (FAQ)

Q1: What is the VA funding fee?
A: A one-time fee paid to VA that helps lower the cost of the loan program. It can be financed into the loan or paid at closing.

Q2: Are VA loan closing costs lower than conventional loans?
A: Generally yes - VA limits certain fees and eliminates mortgage insurance, but appraisal costs may be higher.

Q3: Can closing costs be rolled into a VA loan?
A: Most closing costs must be paid at closing, though the VA funding fee can be financed.

Q4: What's the average closing cost for a VA loan?
A: Typically 3-5% of the loan amount, but this varies by location and lender.

Q5: Are disabled veterans exempt from any fees?
A: Veterans with VA disability compensation are exempt from the VA funding fee.