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Reviewed by: , Senior Loan Officer NMLS#1001095
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The Real Cost of a VA Loan in San Antonio (2026 Guide)

If you’re a Veteran or active-duty service member eyeing a home in San Antonio, VA loans are a powerful tool to make homeownership affordable.

But beyond the purchase price, what costs should you expect? From the VA funding fee to closing costs and ongoing expenses, this guide breaks down every dollar you’ll need to budget for in Military City USA.

Expect to pay a VA funding fee of 2.15%–3.3% (unless exempt), closing costs of 1%–3% of the loan amount, and ongoing costs like property taxes and insurance. Let’s dive into the details to help you plan smart and save where possible.

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Key Takeaways

  • VA Funding Fee: Typically 2.15% for first-time buyers, it’s the largest VA-specific cost—but can be rolled into the loan.
  • Closing Costs: Expect 1–3% of the loan amount. VA rules limit certain fees, and sellers can cover some costs.
  • Exemptions Save Thousands: Veterans receiving VA disability compensation or with a Purple Heart are exempt from the funding fee.
  • Seller Concessions: Up to 4% of the home price can be covered by the seller, including non-allowable fees or prepaid items.
  • Monthly Budget Planning: Ongoing costs include Bexar County’s ~2.2% property tax rate and ~$1,800/year in homeowners insurance.
  • Non-Allowable Fees: Certain lender fees are banned and must be paid by the lender or seller—not the Veteran.
  • VA Loan Limits: Full entitlement allows loans above $832,750 in San Antonio without a down payment, pending lender approval.
  • Local Resources Help: Programs like the Texas Veterans Land Board offer low-interest loans and financial assistance for eligible Veterans.

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Data Freshness Disclaimer: The cost estimates and market data in this guide reflect information from mid-2026. These figures are for educational purposes only and may change. Always consult your lender’s official Loan Estimate and local real estate professionals for the most accurate, up-to-date numbers.

Why VA Loan Costs Matter in San Antonio

San Antonio, known as Military City USA, is home to Joint Base San Antonio and a vibrant Veteran community. VA loans, backed by the U.S. Department of Veterans Affairs, offer unbeatable benefits like no down payment, no private mortgage insurance (PMI), and competitive interest rates. For 2026, the VA loan limit in Bexar County is $832,750, meaning you can borrow up to this amount without a down payment if you have full entitlement. But costs like the VA funding fee, appraisals, and ongoing expenses can add up. Understanding these upfront ensures you’re not caught off guard.

Key VA Loan Costs in San Antonio

VA loans are designed to keep homeownership affordable, but they come with specific costs beyond the home’s price. Here’s what you’ll encounter.

VA Funding Fee: The Biggest Upfront Cost

The VA funding fee is a one-time charge that sustains the VA loan program by offsetting costs to taxpayers. It ranges from 2.15% to 3.3% of the loan amount, depending on factors like loan type, whether it’s your first VA loan, and if you make a down payment. For a $350,000 loan, a 2.15% funding fee equals $7,525.

Here’s how the funding fee varies:

Loan Type

First-Time Use

Subsequent Use

With 5% Down Payment

With 10%+ Down Payment

Purchase (Full Entitlement)

 2.15% 3.3% 1.5% 1.25%

Cash-Out Refinance

 2.15% 3.3%

N/A

N/A

IRRRL (Streamline Refinance)

 0.5% 0.5%

N/A

N/A

Exemptions: You’re exempt from the funding fee if you receive VA disability compensation, are an active-duty service member with a Purple Heart, or are a surviving spouse receiving Dependency and Indemnity Compensation (DIC). Verify your exemption status at VA.gov.

Tip: You can roll the funding fee into your loan to reduce upfront costs, but this increases your monthly payments and total interest over time.

Closing Costs: What You’ll Pay at Signing

Closing costs for VA loans in San Antonio typically range from 1% to 3% of the loan amount. For a $350,000 loan, that’s $3,500–$10,500. These include:

  • Loan Origination Fee: Capped at 1% of the loan amount (e.g., $3,500 on a $350,000 loan) under VA’s “1% rule.” This covers lender processing costs.

  • Appraisal Fee: Around $600–$800 in San Antonio, depending on the home’s size. VA appraisals ensure the property meets Minimum Property Requirements (MPRs).

  • Title Insurance: Roughly $1,200–$2,500, based on the home’s value, to protect against title disputes.

  • Other Fees: Credit report fees ($50–$100), recording fees ($100–$200), and prepaid items like property taxes and homeowners insurance.

Sellers can cover all loan-related closing costs and up to 4% of the purchase price in concessions, which can include non-allowable fees like document preparation. This can significantly lower your out-of-pocket expenses.

Non-Allowable Fees: Costs You Don’t Pay

The VA protects borrowers by prohibiting certain fees, known as non-allowable fees. These include:

  • Loan application or processing fees

  • Rate lock fees

  • Document preparation fees

  • Lender-ordered appraisals (except for construction loans)

  • Attorney fees charged by the lender

If these fees arise, the lender, seller, or real estate agent must cover them. For example, on a $350,000 loan, the lender can’t charge more than $3,500 in origination fees, and non-allowable fees must be absorbed elsewhere. Learn more at VA.gov.

San Antonio’s Housing Market: Budgeting for VA Loan Costs

San Antonio’s housing market remains one of Texas’s most affordable, making it a hotspot for Veterans using VA loans. According to the San Antonio Board of Realtors (SABOR), the median home price in June 2026 was approximately $317,990, up 0.4% from last year. This affordability, compared to Austin ($430,000+) or Dallas ($400,000+), makes neighborhoods like Alamo Ranch, Stone Oak, and Southtown attractive for VA loan buyers.

Here’s a sample budget for a $350,000 home in San Antonio:

Category

Amount

Home Price

 $350,000

Down Payment

$0 (VA loan benefit)

Upfront Costs (Estimates)

  

VA Funding Fee (2.15%, first-time use)

$7,525 (can be financed)

Appraisal Fee

 ~$600

Title Insurance & Other Closing Costs

 ~$3,500

Total Estimated Cash to Close

~$4,100 (if funding fee is financed)

Ongoing Monthly Costs (Estimates)

  

Property Taxes (Bexar County)

~$650/month

Homeowners Insurance

~$150/month

Note: Property tax rates in Bexar County average around 2.2% of the home’s assessed value, though exemptions like the homestead exemption can lower this. Homeowners insurance costs vary based on coverage and location. Check local rates at Texas.gov.

Strategies to Minimize VA Loan Costs in San Antonio

Saving money on your VA loan is all about strategy. Here’s how to keep costs low:

  • Negotiate Seller Concessions: San Antonio’s buyer-friendly market often allows sellers to cover closing costs or non-allowable fees. A VA-savvy realtor can negotiate up to 4% of the purchase price in concessions.

  • Shop Around for Lenders: Compare origination fees and interest rates from multiple VA-approved lenders. Use the VA’s lender comparison tools at VA.gov to find the best deal.

  • Apply for Funding Fee Exemptions: If you’re eligible for a funding fee exemption (e.g., receiving VA disability), submit documentation early to save thousands.

  • Explore Local Programs: The Texas Veterans Land Board offers low-interest home loans and home improvement loans that can complement your VA loan, reducing overall costs. Visit TVLB.Texas.gov.

  • Budget for Ongoing Costs: Factor in Bexar County property taxes (~2.2%) and homeowners insurance (~$1,800/year) when planning your monthly budget.

Common Misconceptions About VA Loan Costs

Let’s debunk some myths that can cloud your planning:

  • Myth: VA loans have no costs.
    Truth: You’ll pay the funding fee (unless exempt) and closing costs, though VA loans are often cheaper than conventional loans.

  • Myth: You can’t use a VA loan multiple times.
    Truth: You can reuse your VA loan benefit if previous loans are paid off or entitlement is restored.

  • Myth: All lenders charge identical fees.
    Truth: Origination fees and interest rates vary, so shop around to save.

Your Path to Affordable Homeownership in San Antonio

Buying a home in San Antonio with a VA loan is a smart move, but knowing the costs beyond the purchase price is essential. From the VA funding fee (2.15%–3.3%) to closing costs (1%–3%) and ongoing expenses like property taxes, planning ahead saves you money and stress. Leverage seller concessions, explore exemptions, and use local programs to keep costs low. Ready to buy? Connect with a VA-approved lender and start exploring San Antonio’s vibrant neighborhoods today.

Official Resources for VA Loan Costs in San Antonio

To help you verify costs and explore financial programs, we’ve compiled this list of official government resources. We always recommend consulting these sources for the most current regulations and rates.

  • U.S. Department of Veterans Affairs (.gov)

  • State of Texas & Local Resources

  • Financial Planning Tools

    • CFPB Mortgage Calculator – A trusted, unbiased calculator from the Consumer Financial Protection Bureau to help you accurately estimate your total monthly housing payment.

FAQs About VA Loan Costs in San Antonio

1. What is the VA funding fee in 2026?

The VA funding fee ranges from 0.5% to 3.3%, typically 2.15% for a first-time purchase. Exemptions apply for Veterans with VA disability, Purple Heart recipients, or surviving spouses receiving DIC.

2. Can I roll the VA funding fee into my loan?

Yes, financing the funding fee reduces upfront costs but increases your monthly payments and total interest over the loan term.

3. What are non-allowable fees for VA loans?

Non-allowable fees include application fees, rate lock fees, document preparation, and lender-ordered appraisals. These must be paid by the lender, seller, or agent.

4. How much are closing costs for a VA loan in San Antonio?

Closing costs range from 1% to 3% of the loan amount ($3,500–$10,500 for a $350,000 loan). Seller concessions can offset these costs.

5. Can sellers cover my closing costs?

Yes, sellers can pay all loan-related closing costs and up to 4% of the purchase price in concessions, including non-allowable fees or prepaid items.

6. Are there local programs for Veterans in San Antonio?

The Texas Veterans Land Board offers low-interest loans for homes and improvements, complementing VA loans to reduce costs. Learn more at TVLB.Texas.gov.

7. How do property taxes affect my VA loan budget?

Bexar County property taxes average 2.2% of the home’s value (~$7,700/year for a $350,000 home). Homestead exemptions can lower this amount.

8. Can I use a VA loan for a fixer-upper in San Antonio?

Yes, VA renovation loans finance repairs for fixer-uppers, but the home must meet VA’s Minimum Property Requirements post-renovation.

9. What’s the VA loan limit in San Antonio for 2026?

The VA loan limit in Bexar County is $832,750. Veterans with full entitlement can borrow more without a down payment, subject to lender approval.

10. How do I know if I’m exempt from the funding fee?

Check your eligibility for exemptions (e.g., VA disability or Purple Heart) at VA.gov.

To assist with your research, we’ve compiled a list of official and authoritative resources for information on military services, schools, safety, and local government in the greater San Antonio region.

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