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Upfront Costs For a VA Home Loan

A graphic of the word "cost"

If you are looking to begin the application process for a new loan, costs are probably running through your mind. Upfront costs, closing costs and many other fees are normally attached to a loan agreement, but with VA home loans it’s different. A VA home loan through VA Loan Spot actually has zero upfront fees, so your new dream home is just around the corner with us!

No Upfront Costs

As a veteran goes through the VA loan application process, they can expect to pay zero upfront fees. It is illegal for any lender to charge veterans anything upfront before closing. This means your appraisal, termite inspections, your funding fee and any other additional fees will all be added to the loan and included in the closing costs.

Who Pays For the Closing Costs?

A veteran is limited to the types of closing costs that he/she can pay for. This ultimately helps the veteran save money during closing. Here is a list of things a veteran is allowed to pay for:

  • Appraisal
  • Credit Report
  • Title Insurance
  • Origination Fee
  • Recording Fee
  • Survey

If the veteran is only allowed to pay for certain fees, who pays for the attorney, underwriting, escrow, processing, document and tax services? These fees are known as non-allowed fees; fees that aren’t for the veteran to pay.

Non-allowed fees are something left for the seller, the agent, or the lender. The only way for a veteran to pay for non-allowed fees is if the lender charges a 1% origination fee instead of the non-allowable charges like an attorney or underwriting charges.

Are There Any Other Fees?

The only reason veterans would ever have to pay for anything out-of-pocket on a VA home loan is if they decide to not to go with the loan in the end or for some reason a loan does not closed. These circumstances normally do not occur.


Still unsure about a new mortgage? The home loan experts at VA Loan Spot can help determine if you are financially ready for a VA home loan. Let our experts help you with closing costs, the application and anything in between. Call VA Loan Spot today!

Bobby Atkisson

Bobby Atkisson

Bobby Atkisson is a seasoned mortgage professional who provides high quality financial services to military members and veterans. With over 14 years experience in the lending and financial industry, his mission is to provide high quality mortgage programs with the most competitive interest rates. For expert advice and guidance on VA Home Loans and Refinance, contact Bobby today at 800-537-2050.