VA loans offer some of the most valuable benefits in home financing, including zero down payments and no monthly mortgage insurance. Yet, the final stages can be daunting—especially when reviewing your Closing Disclosure (CD).
This comprehensive five-page document spells out your loan details, closing costs, and future obligations. Overlooking errors or misunderstandings can be costly, so it’s vital to understand how each line item applies to your VA loan.
In this guide, we break down every page of the CD, highlight VA-specific considerations, and offer actionable tips. By the end, you’ll have the clarity needed for a confident closing day.
Key Takeaways
- You must receive a Closing Disclosure at least three business days before signing.
- Only the VA funding fee may be financed on purchase; other costs are paid.
- Seller concessions are capped at four percent; standard credits differ.
- Always verify wiring instructions by phone using a trusted number.
- Complete a final walk-through with utilities on and repair receipts handy.
- Recording and disbursement must occur before keys and official ownership.
What Is the Closing Disclosure for a VA Loan?
The Closing Disclosure (CD) is a standardized, five-page form mandated by the Consumer Financial Protection Bureau (CFPB). It became mandatory under TRID (TILA-RESPA Integrated Disclosure) rules, replacing older forms like the HUD-1 Settlement Statement and Truth-in-Lending Disclosure. For VA loans, the Closing Disclosure includes specific items such as the VA funding fee, potential seller concessions, and other costs unique to VA financing. Legally, your lender must provide the CD at least three business days before you close, giving you time to review and spot any discrepancies or errors.
This crucial document protects borrowers—especially Veterans—from predatory lending practices by ensuring transparency. By comparing your Closing Disclosure to your original Loan Estimate, you can quickly identify changes in costs, interest rates, or loan terms before signing on the dotted line.
Why the Closing Disclosure Matters for VA Loan Borrowers
- Transparent Costs: It clearly outlines all fees, including the VA funding fee, origination fees, and prepaid items.
- Regulatory Compliance: VA loans have special rules (e.g., no non-allowable fees to the Veteran), and the CD confirms compliance.
- Prevent Surprises: Reviewing the CD helps you avoid unexpected interest rates or balloon payments.
- Legal Protections: The three-day review period (required by CFPB) ensures you have the opportunity to question or dispute inaccuracies.
Remember, VA loans are designed to protect Veterans. The CD is your best friend in verifying the lender and settlement agent are following VA guidelines.
More VA Closing Costs Resources
- VA Closing Costs Guide See typical VA fees, who pays them, and saving strategies.
- VA Funding Fee: Rates and Rules Rates by service category, first use vs. subsequent, exemptions explained.
- Finance the VA Funding Fee or Pay at Closing? Pros and cons of financing the fee versus paying cash upfront.
- VA Loan Closing Disclosure Explained Understand each line item, timing, and how to spot errors.
- VA Loan Fees: Current Costs Current lender fees, third-party charges, and common ranges to expect.
- VA Closing Day Checklist Step-by-step tasks to prepare documents, funds, insurance, and utilities.
- VA Closing Costs Timeline When estimates arrive, what's due when, and milestones from start.
- No-Closing-Cost VA Loans How lenders offset fees, rate tradeoffs, and when this option fits.
A Line-by-Line Breakdown of the Closing Disclosure
The Closing Disclosure is divided into five pages. Below is an exhaustive look at each page, with a focus on how items specifically apply to VA loans.
Page 1: Loan Terms, Projected Payments & Costs at Closing
Section 1: Loan Terms
- Loan Amount: This is the total amount you’re borrowing, including any financed VA funding fee. Since many Veterans opt to finance the funding fee, confirm that figure matches your expectations.
- Interest Rate: VA loans generally offer competitive rates. Ensure the rate here matches what you locked in. If it’s higher, inquire immediately.
- Monthly Principal & Interest: This line shows the core monthly payment before adding any escrow (taxes/insurance). If you financed the funding fee, expect a slightly higher monthly payment.
- Prepayment Penalty: VA loans rarely include prepayment penalties. If you see one, it’s a red flag—contact your lender.
- Balloon Payment: Also uncommon for VA loans. Any balloon payment here is another potential red flag.
Section 2: Projected Payments
- Years 1-7 / 8-30 (if applicable): Shows how your monthly payments may change over time. For fixed-rate VA loans, this section should stay consistent.
- Mortgage Insurance (MI): Usually listed as “N/A” for VA loans because there’s no private mortgage insurance requirement, but watch for any mistakes.
- Estimated Escrow: Includes property taxes and homeowners insurance. VA loans typically require an escrow account unless certain exemptions apply.
Section 3: Costs at Closing
- Estimated Closing Costs: The total of all lender fees, third-party charges, prepaid costs, and other expenses. You’ll find a detailed breakdown on Page 2.
- Estimated Cash to Close: The amount you need to bring to closing. This number factors in down payment (often $0 for VA loans), credits, and other adjustments.
Page 2: Closing Cost Details
Page 2 breaks down all costs into Loan Costs (Sections A, B, C) and Other Costs (Sections E, F, G, H). For VA loans, pay special attention to non-allowable fees.
Section A: Origination Charges
- Origination Fee: Typically capped at 1% of the loan amount by VA guidelines. If you see more than 1%, ask for clarification.
- Application / Underwriting Fees: Sometimes lumped together, must comply with VA’s fee restrictions.
Section B: Services You Cannot Shop For
- Appraisal Fee (VA Appraisal): VA sets regional fee schedules (e.g., $500–$1,200). Confirm it matches your state’s standard VA appraisal cost.
- Credit Report Fee: Typically minimal; ensure the amount aligns with actual credit pull costs.
Section C: Services You Can Shop For
- Title Search / Title Insurance: Fees vary by state and provider. This protects you and the lender from title issues.
- Pest Inspection: A pest inspection is common in VA loans; in many states, the seller or lender covers this cost due to VA rules.
Section E: Taxes and Other Government Fees
- Recording Fees: Charges for recording the deed and mortgage documents. Should be standard in your area.
Section F: Prepaids
- Homeowners Insurance Premium: Typically covers the first 6–12 months. This cost is often required to secure coverage from day one.
- Property Taxes: Some local jurisdictions require an upfront deposit.
Section G: Initial Escrow Payment at Closing
- Escrow Setup: Reflects two to three months of taxes and insurance that your servicer will hold.
Section H: Other
- VA Funding Fee: This is typically listed here if you’re paying it as a lump sum at closing, or it may appear in Section A if you’re financing it. Double-check the percentage based on your down payment and prior VA loan usage.
- Other VA-Specific Fees: Any specialized costs or credits not included above.
Page 3: Calculating Cash to Close & Summaries of Transactions
This page consolidates all credits, fees, and payments to show your “Cash to Close”. For VA loans:
- Down Payment: Often $0 (zero down), unless you choose to put money down to reduce the VA funding fee.
- Seller Concessions: VA allows the seller to contribute up to 4% of the sale price toward closing costs, know as the VA 4% rule, prepaids, or the funding fee. These credits reduce your cash to close.
- Earnest Money Deposit: Already paid to the seller or escrow. It’s subtracted from what you owe at closing.
- Adjustments & Prorations: If the seller prepaid taxes or HOA dues, this section shows how much you owe or how much you’re credited.
Verify that all calculations align with your purchase contract and Loan Estimate. If the final numbers differ significantly, ask your lender or real estate agent why.
Page 4: Loan Disclosures
This section covers policies and legal details, including:
- Assumption: States whether a future buyer can assume your VA loan. Many VA loans are assumable, but verify if that’s important to you.
- Demand Feature: Indicates if your lender can require early repayment. VA loans typically do not include this.
- Late Payment Policies: Explains penalty fees if your payment is overdue.
- Negative Amortization: Not generally part of VA loans; should state “No.”
- Escrow Account Details: Confirms whether taxes and insurance are escrowed. For most VA loans, they are.
Page 5: Loan Calculations & Other Disclosures
The final page includes:
- Loan Calculations: Total of Payments, Finance Charge, Amount Financed, APR, and Total Interest Percentage (TIP). Ensure the APR and TIP match what you expect for a VA loan.
- Other Disclosures: References to appraisal rights, refinancing disclaimers, and the CFPB’s role. There should be a statement on how to file complaints if something is incorrect.
- Contact Information: Lender, mortgage broker, real estate broker, and settlement agent details. Note these for future reference.
- Confirm Receipt: Your signature does not mean you accept the loan—it simply confirms you received the document.
VA Funding Fee: How It Appears on the Closing Disclosure
The VA funding fee is a unique component of VA loans, helping to keep the program self-sustaining. Depending on whether this is your first or subsequent use and your down payment amount, the percentage varies. It can be either:
- Paid Upfront: Listed in Section H on Page 2.
- Financed: Rolled into your loan amount on Page 1.
Be sure to verify the correct fee percentage. For example:
- First-time use with no down payment: around 2.15% (active duty/veterans).
- Subsequent use with no down payment: around 3.3%.
- Exemptions: Veterans with a 10% or higher service-connected disability rating typically pay no funding fee.
Comparing a VA Closing Disclosure to a Conventional Loan Closing Disclosure
While both disclosures are structurally similar, key differences for VA loans include:
- VA Funding Fee vs. Private Mortgage Insurance (PMI): Conventional loans often require PMI if you put less than 20% down. VA loans replace PMI with the one-time funding fee.
- Non-Allowable Fees: The VA restricts certain fees lenders can charge. Conventional loans have fewer limits.
- Seller Concessions: For VA loans, the seller can pay up to 4% of the loan amount in concessions. Conventional limits vary based on down payment.
How to Review Your VA Loan Closing Disclosure
- Compare with the Loan Estimate: Significant differences demand an explanation.
- Check the VA Funding Fee: Ensure it matches your service status and whether it’s your first or subsequent use.
- Identify Non-Allowable Fees: The VA prohibits certain charges to Veterans, such as attorney fees or brokerage fees.
- Inspect Cash to Close: Confirm it accounts for seller concessions, credits, and earnest money deposits.
- Confirm Rate and APR: VA loan rates are competitive; if it’s unexpectedly high, ask your lender why.
- Look for Red Flags: Prepayment penalties, balloon payments, or negative amortization typically do not apply to VA loans.
- Ask Questions: Contact your lender or a VA-approved housing counselor if anything is unclear.
Real-World Example: Correcting a VA Funding Fee Error
Imagine you’re an active-duty service member using your VA home loan benefit for the first time. Your funding fee should be around 2.15% of the loan amount if you’re not making a down payment. On the CD, the lender accidentally listed 3.3%—the rate for a subsequent use. With a $300,000 loan, this mistake would cost you an extra $3,450. By reviewing Page 2 carefully and catching the error, you could contact your lender and have them correct it before signing, saving thousands of dollars.
Consumer Protections & Legal Requirements
- TRID Rules: Lenders must deliver your Closing Disclosure at least three business days before you close. If significant changes occur, a new three-day review may be required.
- CFPB Oversight: The Consumer Financial Protection Bureau enforces these regulations. You can file a complaint if you suspect unfair or deceptive practices.
- VA Loan Safeguards: The VA prohibits certain fees, ensures you have a fair appraisal, and offers foreclosure avoidance help if you struggle with payments.
After You Receive the Closing Disclosure
Here’s what happens next:
- Three-Day Review Period: Use this time to identify and correct errors. Don’t rush.
- Address Discrepancies: Contact your lender if fees or loan terms are not what you agreed upon.
- Closing Day: You’ll sign final documents, pay closing costs (if needed), and receive the keys to your new home.
- Post-Closing: Keep your Closing Disclosure for reference during tax season (some costs may be deductible) or if you refinance later.
- Loan Servicing: Your loan may be transferred to another servicer. This does not change your rate or terms, but always confirm new payment instructions in writing.
Frequently Asked Questions
What is a Closing Disclosure for a VA loan?
The Closing Disclosure is a five-page form detailing the final terms of your VA mortgage, including your interest rate, loan amount, VA funding fee, and total closing costs. You must receive it at least three business days before closing.
How does the VA funding fee appear on the Closing Disclosure?
If you’re paying the VA funding fee upfront, you’ll see it in Section H on Page 2. If it’s financed, it will be added to your loan amount on Page 1.
Can closing costs change between the Loan Estimate and Closing Disclosure?
Minor adjustments are common, but large discrepancies (beyond allowable tolerances) could reset the three-day review clock. Always compare both documents.
Are there fees VA loan borrowers do not pay?
Yes. The VA forbids certain “non-allowable” fees such as attorney fees or brokerage fees charged directly to the Veteran. Verify your lender is following these rules.
How do seller concessions work with a VA loan?
The VA allows sellers to pay up to 4% of the loan amount in concessions. These funds can cover closing costs, prepaid expenses, or even the VA funding fee.
What happens if I find an error on the Closing Disclosure?
Immediately contact your lender or settlement agent. Small changes can be fixed quickly, but major ones may require issuing a new CD, delaying closing.
Can I waive the three-day waiting period?
No. Federal law requires the three-day review to protect you from rushed closings and undisclosed fees.
Why is my escrow account required on a VA loan?
Most VA lenders require escrow to ensure property taxes and insurance are paid on time. This safeguard protects both you and the lender.
How do I know if my final VA loan terms are fair?
Compare your CD to the Loan Estimate and to typical market rates. Seek advice from a VA-approved housing counselor or real estate attorney if uncertain.
What replaced the HUD-1 Settlement Statement?
The Closing Disclosure (and Loan Estimate) replaced the HUD-1 and old Truth-in-Lending forms in 2015, simplifying disclosures into two main documents.
Real-World Success Stories: Veterans Who Used the CD Effectively
Case Study #1: A National Guard member spotted a $2,000 origination fee above the VA’s 1% cap. By questioning it, the lender promptly removed the excess charge.
Case Study #2: A retired Marine noticed her mortgage insurance was mistakenly listed. She pushed back, and the lender corrected the error, reducing her monthly payment by $100.
Next Steps: Closing and Beyond
Once you’ve confirmed all the details in the Closing Disclosure are accurate and comply with VA loan rules, you’ll proceed to closing. Bring valid identification and payment for any remaining “Cash to Close” (if applicable). Don’t feel pressured to sign if you discover discrepancies—you have legal rights to delay closing until the lender provides a corrected document.
After closing, keep your Closing Disclosure safe for tax deductions, potential refunds, and future refinances. If issues arise, consult a VA-approved housing counselor or call the CFPB for guidance.
The Bottom Line
The Closing Disclosure is your last stop before signing off on a VA loan. It encapsulates every fee, term, and condition of your mortgage, ensuring full transparency and compliance with VA rules.
By examining each page closely—and comparing it to your Loan Estimate—you can protect yourself from inaccurate charges, predatory lending practices, and unwelcome surprises.
Take advantage of the mandatory three-day review period to address any inconsistencies.
If you need expert guidance, consult a VA-approved housing counselor or your real estate attorney. Armed with this knowledge, you can approach the closing table prepared, confident, and excited about your new home.
The Bottom Line Up Front
The Closing Disclosure is the final accounting of your VA loan. Every dollar you owe at closing, every term you agreed to, and every fee the lender is charging shows up on this five-page form. If a number is wrong here and you sign anyway, you own it. For more, see our guide on home viewing red flags.
On a VA purchase, the CD works exactly like it does on conventional, with three VA-specific wrinkles: the VA funding fee replaces PMI, certain fees are non-allowable to the veteran, and seller concessions cap at 4% of the sale price. Those three items are where the mistakes happen. A funding fee calculated at the wrong percentage, an origination charge above the 1% cap, or a concession credit that does not match the contract can each cost you thousands.
Your lender is required to deliver the CD at least three business days before closing under the TRID rule that went into effect in 2015. That review window exists for one reason: so you can catch errors before they become permanent. Use it.
owes you a cure credit at closing.
What the Closing Disclosure Is and Why It Matters
The Closing Disclosure replaced the old HUD-1 Settlement Statement and Truth-in-Lending form in October 2015 under TRID (TILA-RESPA Integrated Disclosure) rules enforced by the Consumer Financial Protection Bureau. For VA borrowers, it is the document that confirms the lender followed VA fee restrictions, applied the correct funding fee rate, and credited any seller concessions.
You receive the CD after the lender finalizes underwriting and title work. The three-day review period is a federal requirement, not a suggestion. If the lender changes the APR by more than 1/8 of a percent, switches the loan product, or adds a prepayment penalty after delivery, the clock resets and a new CD triggers another three business days.
What the CD Protects You From
- Last-minute fee increases that were not disclosed on the Loan Estimate
- Incorrect interest rates or loan terms
- Non-allowable charges billed directly to the veteran
- Missing seller concession credits that should reduce your cash to close
- Undisclosed balloon payments or prepayment penalties (red flags on VA loans)
Page-by-Page Breakdown of the Closing Disclosure
The CD is five pages long. Each page has a specific job. Here is what to look at on a VA loan and where mistakes show up.
Page 1: Loan Terms, Projected Payments, and Costs at Closing
Page 1 is the summary. It shows the loan amount, interest rate, monthly principal and interest, and whether there is a prepayment penalty or balloon payment. On a VA loan, the loan amount will include the financed funding fee if you chose to roll it in. Verify the rate matches what you locked.
The Projected Payments section breaks out your monthly payment over the life of the loan. On a 30-year fixed VA loan, Years 1 through 30 should be identical. The mortgage insurance line should read zero because VA loans do not carr
The Costs at Closing box shows two numbers: total closing costs and estimated cash to close. The detailed breakdown is on Page 2.
ng costs and estimated cash to close. The detailed breakdown is on Page 2.
Page 2: Closing Cost Details
This is where the money lives. Page 2 splits costs into Loan Costs (Sections A, B, C) and Other Costs (Sections E, F, G, H).
Section A is origination charges. On a VA loan, the origination fee is capped at 1% of the loan amount. If the lender itemizes fees instead of charging a flat 1%, the total still cannot exceed that cap. Discount points are separate from origination and are permitted above the 1% cap if you chose to buy down your rate.
Section B covers services you cannot shop for: the VA appraisal, credit report, flood certification. The VA appraisal fee is set by a regional schedule and typically runs $500 to $1,200 depending on the state.
Section C covers services you can shop for: title search, title insurance, and the pest inspection. In many states, the seller pays for the pest inspection on VA transactions because the VA prohibits charging it to the veteran.
Section H is where the VA funding fee appears if you are paying it as a lump sum at closing. If you financed it, it shows in the loan amount on Page 1 instead.
| Section | What It Covers | VA-Specific Watch |
|---|---|---|
| A — Origination | Lender origination fee, discount points | Origination capped at 1% of loan amount |
| B — Cannot Shop | VA appraisal, credit report, flood cert | Appraisal fee must match VA regional schedule |
| C — Can Shop | Title search, title insurance, pest inspection | Pest inspection often paid by seller on VA |
| E — Government Fees | Recording fees, transfer taxes | Standard; varies by county |
| F — Prepaids | Homeowners insurance, property taxes, per-diem interest | First-year premium usually required upfront |
| G — Escrow | Tax and insurance escrow cushion (2–3 months) | VA lenders typically require escrow |
| H — Other | VA funding fee (if paid upfront), HOA prorations | Verify fee percentage matches your usage tier |
Page 3: Cash to Close and Transaction Summary
Page 3 consolidates everything into your final cash-to-close number. On a VA purchase with zero down, this is typically just closing costs minus any seller concessions and your earnest money deposit. If you negotiated seller concessions in the contract, they appear here as a credit and reduce what you bring to the table.
The transaction summary shows the sale price, all adjustments, and prorations. If the seller prepaid property taxes past the closing date, you owe a prorated credit. If the seller owes HOA dues, the adjustment works the other way.
Verify every credit matches your purchase contract. If the numbers do not line up, ask the settlement agent for a corrected CD before closing day.
Page 4: Loan Disclosures
Page 4 covers the legal details of your loan. For VA borrowers, the key items are:
Page 4 Items to Verify
- Assumption: Most VA loans are assumable, which is a significant benefit. Confirm this says “Yes.”
- Demand Feature: Should say “No.” VA loans cannot be called due on demand.
- Late Payment: Typically a 4% late fee after a 15-day grace period.
- Negative Amortization: Should say “No.” Not part of standard VA loans.
- Escrow Account: Should confirm taxes and insurance are escrowed.
Page 5: Loan Calculations and Contact Information
The final page shows the total of payments over the life of the loan, the finance charge, amount financed, APR, and Total Interest Percentage (TIP). These are disclosure-only numbers, not items you negotiate. Confirm the APR is close to your locked rate. A gap larger than about 0.25% usually means costs are higher than expected.
The contact section lists the lender, settlement agent, and any real estate brokers involved. Keep this page. You will need these contacts if a servicing question or escrow dispute comes up after closing.
Signing Page 5 confirms you received the document. It does not mean you accept the loan terms.
How the VA Funding Fee Appears on the CD
The funding fee is the one VA-specific cost that can swing your closing costs by thousands of dollars. The percentage depends on three things: whether this is your first or subsequent use of the VA loan benefit, your down payment amount, and your service category.
If you finance the funding fee, it gets added to your base loan amount and shows on Page 1. If you pay it upfront, it appears in Section H on Page 2. Either way, the percentage should match the current 2026 VA fee schedule.
| Usage | Down Payment | Funding Fee |
|---|---|---|
| First use | Less than 5% | 2.15% |
| First use | 5% to 9.99% | 1.50% |
| First use | 10% or more | 1.25% |
| Subsequent use | Less than 5% | 3.30% |
| Subsequent use | 5% to 9.99% | 1.50% |
| Subsequent use | 10% or more | 1.25% |
Veterans with a service-connected disability rating of 10% or higher are exempt from the funding fee. If you have a pending disability claim, you may pay the fee at closing and receive a refund later once the rating is approved. Surviving spouses of veterans who died in service or from a service-connected disability are also exempt.
Approval Watchpoint
The most common funding fee error: the lender marks subsequent use when it is actually first use, or vice versa. On a $350,000 loan, the difference between 2.15% and 3.30% is $4,025. Catch this before signing.
VA Closing Disclosure vs. Conventional Closing Disclosure
The five-page form is identical. The differences are in what fills it. A conventional borrower who puts less than 20% down sees a monthly PMI premium on Page 1. A VA borrower sees zero in that line because the one-time funding fee replaces PMI entirely.
On costs, the VA restricts which fees the veteran can pay. Attorney fees, brokerage commissions, and certain settlement charges are non-allowable. Conventional loans have no such restrictions. The 4% seller concession cap on VA loans is also different from conventional, where the limit varies by down payment (3%, 6%, or 9%).
How to Review Your VA Closing Disclosure Step by Step
You have three business days. Use them methodically.
CD Review Checklist
- Compare the loan amount, rate, and monthly payment to your Loan Estimate
- Verify the funding fee percentage matches your service tier and usage
- Scan Section A for origination charges above the 1% cap
- Check Section B and C for non-allowable fees billed to you
- Confirm seller concessions on Page 3 match your purchase contract
- Verify the earnest money deposit credit is accurate
- Check the escrow section on Page 4 confirms tax and insurance escrow is active
- Make sure the APR on Page 5 is close to your locked rate
If something is off, contact your loan officer immediately. Small corrections can be made without resetting the three-day clock. Changes to the APR above 1/8%, the loan product, or addition of a prepayment penalty require a new CD and a new three-day wait.
Deal Math
A first-use borrower buys at $350,000 with zero down. Funding fee: $350,000 x 2.15% = $7,525. If the lender mistakenly applies the subsequent-use rate of 3.30%, the fee jumps to $11,550. That is $4,025 extra rolled into the loan, adding roughly $27 per month to the payment on a 30-year fixed at 6.5%. Always verify the fee tier before signing.
What Happens After You Receive the CD
Once the three-day review passes and the CD is accurate, you proceed to closing. Bring a government-issued photo ID and any remaining cash to close. Wire instructions should be confirmed by phone using a number you already have on file for the settlement agent, not a number from an email. Wire fraud is a real risk at closing.
At the table, you sign the note, the deed of trust, and the CD itself. Recording happens after signing, usually the same day. Once the deed is recorded and funds are disbursed, the transaction is complete and you get the keys.
Keep your Closing Disclosure permanently. You will need it for tax deductions on mortgage interest and certain closing costs, for any refinance down the road, and as a reference if your loan is transferred to a new servicer.
Check Your VA Loan Eligibility
The Bottom Line
The Closing Disclosure is the last document standing between you and your VA loan closing. Every fee, every credit, and every term is on these five pages. If the funding fee percentage is wrong, if the origination charge exceeds 1%, or if your seller concessions are not credited, you catch it here or you do not catch it at all.
Use the three-day review window. Compare the CD to your Loan Estimate. Verify the funding fee rate matches your service category and prior usage. Confirm seller concessions line up with your purchase contract. If everything checks out, you close with confidence. If something is off, you have the legal right to delay until the lender issues a corrected document.
Frequently Asked Questions
What is a Closing Disclosure for a VA loan?
It is a five-page form that details every final term of your VA mortgage, including the interest rate, loan amount, VA funding fee, closing costs, and escrow setup. Federal law requires delivery at least three business days before closing.
Where does the VA funding fee show on the Closing Disclosure?
If paid upfront, it appears in Section H on Page 2. If financed, it is added to the loan amount on Page 1. Either way, the percentage should match the VA fee schedule for your service category and usage tier.
Can closing costs change between the Loan Estimate and the CD?
Minor shifts are normal and allowed. But zero-tolerance fees like lender origination cannot increase at all. If they do, the lender must issue a cure credit. Changes that exceed tolerance limits can delay closing.
What fees are non-allowable on a VA loan?
The VA prohibits certain charges to the veteran, including attorney fees, brokerage commissions, and certain settlement fees. Origination is capped at 1% of the loan amount. If you see a charge that looks like one of these, contact your lender before signing.
How do seller concessions work on the CD?
Sellers can contribute up to 4% of the sale price toward closing costs, prepaids, and the funding fee. Those credits appear on Page 3 and reduce the cash you bring to closing.
Can I waive the three-day waiting period?
In a bona fide personal financial emergency, you can sign a written waiver to close sooner. The waiver must be handwritten and specific about the emergency. In practice, this is rarely used and not recommended.
What if I find an error after signing?
Contact your lender immediately. If the error involves overcharges or tolerance violations, the lender must issue a refund within 30 days of closing under TRID rules. You can also file a complaint with the CFPB.
Is escrow required on a VA loan?
Most VA lenders require escrow for property taxes and homeowners insurance. The escrow setup is confirmed on Page 4 of the CD. Exemptions are rare and lender-specific.
