Let’s clear something up:
Just because VA loans come with $0 down doesn’t mean they come with $0 cost. There are fees involved, just like any other mortgage, but the good news is, they’re often similar to what you’d pay with a conventional or FHA loan. Here’s what you need to know about VA loan costs:
The VA Funding Fee
This is the big one. It’s a one-time fee charged by the VA to keep the program running. It’s based on your loan amount, whether you’ve used the VA loan before, and whether you’re putting any money down. Most first-time buyers with no down payment pay around 2.15% of the loan amount. The good news? You don’t have to pay it out of pocket. It can be rolled into the loan and if you receive VA disability—even just 10%—you’re exempt from the fee altogether.
Other Fees to Expect
Like any home loan, you’ll have standard closing costs like:
What You Won’t Pay
What About Seller-Paid Costs?
VA loans allow the seller to pay up to 4% in concessions, which can help cover some of your costs. This isn’t required, but it’s an option worth negotiating.
The Bottom Line
A VA loan can get you into a home with little to no money out of pocket, but you still need to understand the numbers. I walk all my buyers through exactly what to expect up front with no surprises, no BS. Want a clear cost breakdown based on your price point and location? I’ve got you. Contact me today!
