A funding fee must be paid by all veterans using the VA home loan program, except those exempt due to receipt of disability compensation.
- The funding fee varies by the type of VA loan. An Interest Rate Reduction Refinancing Loan (IRRRL) has a very low funding fee; the funding fee for veterans who are subsequent users of the VA home loan program is higher.
- For all VA loans, the funding fee may be paid in cash or included in the loan.
- For more information on the VA funding fee, contact your VA Regional Loan Center.
Other Closing Costs
Reasonable closing costs may be charged by the lender. 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 lenders and also throughout the nation because of differing local laws and customs.
- VA appraisal
- Credit report
- Loan origination fee (usually a small percentage of the loan)
- Discount points
- Title search and title insurance
- Recording fees
- State and/or local transfer taxes, if applicable
No commissions, brokerage fees, or "buyer broker" fees may be charged to the veteran buyer. Source: VA Home Loans – A Quick Guide for Homebuyers and Real Estate Professionals, www.benefits.va.gov/homeloans/vap26-91-1.asp.