2026 VA Closing Costs Estimator & Line‑Item Matrix
Estimate typical VA loan closing costs (excluding the VA funding fee), filter common line items, and see who can pay what under the VA’s rules—including which items can trigger the 4% seller‑concession cap (based on reasonable value).
Educational estimate only. Uses national-average ranges to show category breakdown. Excludes the VA funding fee.
Estimate VA closing costs with national averages
This estimator uses broad national averages to show how closing costs might break out by category. It excludes the VA funding fee on purpose so you can see the underlying costs. Always rely on your official Loan Estimate and Closing Disclosure for binding numbers.
Your scenario (inputs)
Enter a home price and loan amount. If you leave loan amount blank, the estimator assumes the loan roughly equals the price.
Educational estimate only. Not a loan offer or closing‑cost quote.
Estimated closing‑cost breakdown
Enter a home price and loan amount to see an estimated breakdown of lender, third‑party, government, and prepaid items.
| Category | Approx. amount | Typical range |
|---|---|---|
| No estimate yet. Run the calculator to see a category breakdown. | ||
| Total closing costs (excl. funding fee) | — | — |
Funding fee is separate. Use our VA funding fee dataset & calculator to add that amount.
What counts as closing costs on a VA loan?
“Closing costs” are the fees and prepaid items due at settlement, separate from any down payment and separate from the VA funding fee. The VA’s rules focus on what the Veteran may be charged, who can pay each item, and what can count as a seller concession (capped at 4% of the property’s established reasonable value).
- Lender charges: either a flat 1% charge or itemized lender fees (not both), plus discount points (optional).
- Third‑party services: appraisal, credit report, title insurance, settlement/closing fees, tax service, flood certification, and attorney where customary.
- Government charges: recording fees and transfer/doc stamp taxes where applicable.
- Prepaids & escrows: daily interest, initial tax escrow, homeowners insurance, and some HOA items.
On purchases, the VA generally allows you to finance only the VA funding fee into the loan amount; other costs are paid at closing or covered by credits. See our funding fee tables & calculator for exact percentages and exemptions.
Closing costs by line item: allowed, who can pay, and the 4% rule
This table collects common VA closing‑cost line items, how the VA treats them, who can pay them, and whether they commonly fall under the 4% seller‑concession rule (which is based on reasonable value, not loan amount). Amount ranges use national patterns; actual pricing varies by lender and location.
| Category | Fee / line item | VA status | Who can pay? | Counts toward 4% cap? | Typical national range* | Notes |
|---|---|---|---|---|---|---|
| Lender | Flat charge (up to 1% of loan) | Allowed; intended to cover lender origination/overhead in lieu of separate junk fees. | Veteran, seller, or lender credit. Veteran may pay Seller may pay Lender credit OK | No (typically treated as normal closing cost). | 0.5%–1.0% of loan | If the flat charge is used, lenders generally shouldn’t also bill separate lender overhead items to the Veteran. |
| Lender | Itemized lender fees (underwriting, processing, admin) | Allowed instead of a 1% flat charge; the VA restricts which lender-imposed fees can be charged to the Veteran. | Veteran, seller, or lender credit. Veteran may pay Seller may pay Lender credit OK | No (normal closing cost if reasonable). | $900–$1,800 total (varies) | The VA focuses on duplication and reasonableness more than fee labels. |
| Lender | Discount points (permanent buydown) | Allowed; points must be reasonable for the market and loan terms. | Veteran typically pays; seller/lender may pay via credits or negotiation. Veteran may pay Seller may pay Lender credit / offset | Usually no (normal discount points are generally excluded from the 4% concession tally). | 0–3% of loan (often 0–2%) | When pricing is extreme, lenders may need to document reasonableness and classification. |
| Lender | Temporary buydown costs (2‑1, 3‑2‑1) | Allowed if program rules are met and the buydown agreement is documented. | Often funded by seller/builder incentives; sometimes lender‑paid. Seller/builder may pay Lender credit OK | Yes when seller‑funded (commonly treated as a concession). | 0.5%–2% of loan (program‑dependent) | Use our seller‑concessions calculator when structuring incentives. |
| Third‑party | VA appraisal fee | Allowed up to the VA’s published state/region caps. | Veteran typically pays; seller or lender can cover via credits. Veteran may pay Seller may pay Lender credit OK | No (typically normal closing cost). | $600–$900+ (state & type) | See our VA appraisal‑fee schedule for caps and add‑ons. |
| Third‑party | Buyer‑broker charges (commission/fee) | Normally negotiated; the VA has issued a temporary local variance allowing Veterans to pay certain buyer‑broker charges in specific markets. | Seller often pays by negotiation; Veteran may pay only when permitted; not financeable. Negotiated Variance‑dependent | No (not a seller concession if the Veteran pays; if seller pays, typically treated as a normal closing cost credit). | Market‑driven | Confirm local practice and lender treatment early to avoid last‑minute CD changes. |
| Third‑party | Title insurance – lender’s policy | Allowed where customary; pricing driven by state/regional filed rates. | Veteran may pay; seller may pay by custom or negotiation; lender credits can offset. Veteran may pay Seller may pay Lender credit OK | No (typically normal closing cost). | 0.3%–0.6% of loan | Some states customarily have seller pay owner’s policy while buyer pays lender’s policy. |
| Government | Recording fees | Allowed; standard closing cost. | Veteran may pay; seller may pay; lender credit can cover. Veteran may pay Seller may pay | No (typically normal closing cost). | $100–$300 | County‑driven; usually modest compared to other items. |
| Government | Transfer / documentary / stamp taxes | Allowed where customary; who pays often dictated by local custom or statute. | Varies by state: seller, buyer, or split. Lender credit can offset. Local custom / law | No (usually not treated as a concession when paid in the customary way). | 0.1%–1% of price (location‑specific) | High‑tax states and large cities can be materially higher. |
| Prepaids | Prepaid interest (per diem) | Allowed; covers interest from closing to first payment date. | Veteran pays; seller or lender credits can offset as part of total deal. Veteran may pay | No (prepaid item; not a concession by itself). | 15–30 days interest | Closing near month‑end usually reduces this item. |
| Prepaids | Initial property‑tax escrow | Allowed; months required depend on due dates and escrow setup. | Veteran typically funds; seller/lender credits can offset. Veteran may pay | Can count if seller over‑funds as a nonstandard incentive. | 2–6 months of taxes (local) | Often a major driver of cash‑to‑close differences between properties. |
| Funding fee | VA funding fee | Required for most non‑exempt borrowers; percentage depends on loan type, down payment, and prior VA use. | Veteran usually pays (financed or cash); seller can pay as a concession; lender credits may offset. Financed or cash Seller may pay | Yes when seller pays the funding fee (counts toward the 4% concession cap). | 0%–3.3% of loan (separate) | See funding‑fee tables for exact percentages and exemptions. |
*Ranges are national patterns and not quotes. Always rely on your official Loan Estimate and Closing Disclosure for binding numbers.
FAQ: VA closing costs
Fast answers aligned to the VA’s guidance and the fee rules lenders must follow.
How much are VA closing costs on average?
Can I finance my VA closing costs into the loan?
How does the VA 4% seller‑concession cap work?
Do discount points and temporary buydowns count toward the 4% cap?
Can a Veteran pay buyer‑broker charges on a VA loan?
Which fees can’t be charged to the Veteran directly?
Sources
Primary references for the VA rules used on this page.
- the VA — Funding fee and closing costs (including seller concessions and financing rules): VA funding fee & closing costs
- the VA — Lender’s Handbook (M26‑7), Chapter 8 (fees, charges, and the 4% concession rule): M26‑7 Chapter 8 (PDF)
- eCFR — 38 C.F.R. § 36.4313 (permitted charges, 1% flat charge, and construction add‑ons): 38 C.F.R. § 36.4313
- the VA — Temporary local variance for certain buyer‑broker charges: Circular 26‑24‑14 (PDF)
- CFPB — How to read your disclosures: Loan Estimate guide · Closing Disclosure guide
How to think about VA closing costs
Closing costs are the fees and prepaid items due at settlement to finalize your VA loan and transfer ownership: lender charges, title/settlement services, appraisal, recording/transfer charges, and prepaids/escrows (taxes, insurance, and per‑diem interest). The VA funding fee is separate and can be shown as its own line item.
What the VA rules actually limit
On a purchase or construction/permanent loan, the VA generally allows you to finance only the VA funding fee into the loan amount—everything else must be paid at closing or covered by credits. The VA does not cap seller credits for normal closing costs, but it does cap seller concessions at 4% of the home’s reasonable value shown on the VA Notice of Value. Normal discount points and payment of the buyer’s normal closing costs are generally excluded from the 4% concession tally. Buyer‑broker charges may be allowed under a temporary VA variance in some markets, and they can’t be financed.
Seller credits vs seller concessions
If you only remember one thing: keep “seller‑paid normal closing costs” separate from “seller concessions.” That’s how you avoid blowing the VA’s 4% cap when you’re trying to reduce cash‑to‑close.
| Usually outside the 4% concession tally | Commonly treated as seller concessions (counts toward 4%) |
|---|---|
| Seller credit for normal closing costs (title/settlement, appraisal, recording, customary third‑party fees). Normal discount points that are appropriate to the market. | Seller paying the VA funding fee. Debt payoff as an incentive to help you qualify. Extra prepaids beyond what’s typical (unusual insurance/tax funding or escrow padding). Seller‑funded temporary buydown escrows (2‑1, 3‑2‑1). |
Practical rule: if it feels like a “sweetener” added to win the deal (instead of just paying normal costs), assume it might be a concession until your lender confirms classification on the Closing Disclosure.
How to reduce cash‑to‑close without surprises
- Get matched quotes: request at least two Loan Estimates on the same day using the same lock period, loan amount, points/credits, and tax/insurance assumptions.
- Compare rate/credit pairs at your real horizon: lender credits trade a higher rate for lower cash at closing—run the math at the number of years you actually expect to keep the loan.
- Negotiate seller help in the right order: ask for seller‑paid normal closing costs first; reserve concession “room” for items that change affordability (funding fee, temporary buydown, debt payoff).
- Time the closing date: closing nearer month‑end usually reduces prepaid interest, which can move cash‑to‑close even when the rate is identical.
- Shop title/settlement where you can: endorsements, local taxes, and recording charges vary by state and sometimes by county.
- Track a simple ledger: update your projected cash‑to‑close after appraisal, insurance quotes, and repair negotiations so the Closing Disclosure isn’t a shock.
What to verify before you sign
Your Loan Estimate and Closing Disclosure are the source of truth. If the lender is charging the 1% flat charge, make sure they aren’t also billing you separate lender overhead items the VA expects to be covered inside that flat charge. Confirm your funding‑fee exemption status on your Certificate of Eligibility, and confirm how seller help is classified (costs vs concessions) before the final Closing Disclosure is issued.
Educational content only. Confirm all fees and classifications with your lender using your official disclosures.
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 Loan Guide How lenders offset fees, rate tradeoffs, and when this option fits.