VA Loan Allowable Closing Costs & Fees (Fee Finder + 1% Cap Tool)
VA loans restrict what a Veteran may be charged at closing. This page helps you: 1) estimate the lender’s flat charge cap (often “origination”), and 2) look up Closing Disclosure line items to see if they’re allowed, must be inside the flat charge, prohibited, or allowed by variance.
VA issued a temporary local variance (effective Aug 10, 2024) allowing certain buyer‑broker charges to be paid by the Veteran (not financed; must be reasonable & customary; documented). See Sources below.
Starting Jan 1, 2026, VA requires invoices/receipts for most itemized fees charged to the Veteran (with limited exceptions). Don’t “guess” fees—document them.
Flat charge cap calculator (VA “1% rule” + construction add-on)
VA guidance generally allows a lender flat charge up to 1% (and certain construction/alteration loans can add +1% or +2%). If the VA funding fee is financed (standard loans), the 1% is generally based on principal after adding the financed funding fee. IRRRLs use the VA worksheet basis.
For IRRRLs, VA instructs lenders to use the IRRRL worksheet (VA Form 26‑8923) as the basis. Enter the worksheet basis amount in “Loan amount” and leave the funding fee toggle off.
Fee Finder (search Closing Disclosure line items)
Type a fee name (or an alias) and filter by status. This table is intentionally pre-rendered in HTML for crawlability + no‑JS users; JavaScript only filters it.
Try: underwriting, processing, doc prep, settlement, notary, tax service, broker, buyer broker, title, MERS.
Allowed (Veteran may pay) Must be within flat charge Veteran can’t pay Allowed by variance
Results update as you type.
| Fee / category | Status | Where it belongs | Notes / common CD labels |
|---|---|---|---|
| VA appraisal fee (VA appraiser) | Allowed | Itemized (third-party/VA) | Allowed: fee of the VA appraiser. |
| Second appraisal (ROV requested by Veteran) | Allowed | Itemized (if Veteran-requested) | Allowed only when the Veteran requests reconsideration of value. |
| Compliance inspections (inspector/engineer) | Allowed | Itemized (as necessary) | Fee of inspectors/engineers for compliance inspection, if needed. |
| Credit report | Allowed | Itemized (third-party) | Charges by credit reporting agencies; often “credit report,” “tri-merge.” |
| AUS evaluation fee (in lieu of credit report) | Allowed | Itemized (third-party) | Automated underwriting cases may use an evaluation fee (often up to $50) instead of a credit report. |
| Merged credit report (AUS “Refer” cases) | Allowed | Itemized (if required) | May be charged if required for “Refer” cases. |
| Recording fees (and applicable recording taxes) | Allowed | Itemized (governmental) | County/municipal recording charges; many states include recording taxes/transfer-type charges. |
| MERS registration fee (when used) | Allowed | Itemized (as applicable) | Often appears as “MERS fee.” |
| Prepaid items & initial escrow deposit | Allowed | Prepaids/escrows | Taxes/assessments/interest; initial deposit for tax & insurance account (escrow). |
| Hazard (homeowners) insurance | Allowed | Itemized (insurance) | Homeowners insurance premiums when required/used. |
| Flood zone determination (third‑party) + life‑of‑loan tracking | Allowed | Itemized (third-party) | Allowed when purchased from a third party that guarantees accuracy; may include life‑of‑loan tracking if purchased at origination. |
| Flood insurance (when required) | Allowed | Itemized (insurance) | Flood insurance premium when required. |
| Survey | Allowed | Itemized (as required) | Allowed when required by lender or Veteran; condos may require prior VA approval. |
| Title examination & title insurance (incl. certain endorsements) | Allowed | Itemized (title) | Title exam + lender’s title insurance; may include endorsements like environmental protection lien endorsement if required by lender. |
| Special mailing/courier fees (refinances only) | Allowed | Itemized (refi condition) | Allowed on refinances only when per‑diem interest savings to the Veteran exceeds the special handling cost. |
| VA funding fee | Allowed | VA fee (paid or financed when permitted) | Funding fee due at closing or financed when allowed. |
| Loan application / processing / admin fees | Within flat charge | Not separately chargeable to Veteran | Common CD labels: “application,” “processing,” “admin,” “lender fee.” |
| Underwriting fees | Within flat charge | Not separately chargeable to Veteran | Common CD labels: “underwriting,” “UW,” “lender review.” |
| Document preparation / preparing loan papers / conveyancing | Within flat charge | Not separately chargeable to Veteran | Common CD labels: “doc prep,” “doc fee,” “closing package.” |
| Settlement / closing / escrow-type fees | Within flat charge | Not separately chargeable to Veteran | Common CD labels: “settlement,” “closing,” “escrow,” “settlement handling.” |
| Notary fees | Within flat charge | Not separately chargeable to Veteran | Notary-type charges are listed by VA as not separately chargeable to the Veteran as itemized fees. |
| Lender/closing attorney services (other than title work) | Within flat charge | Not separately chargeable to Veteran | Title work is handled under “title examination/insurance.” |
| Amortization schedules / pass books / membership or entrance fees | Within flat charge | Not separately chargeable to Veteran | Often appears as a “membership fee” (varies by lender/program). |
| Loan broker / finder fees (mortgage brokering) | Within flat charge | Not separately chargeable to Veteran | Different from real estate agent commissions; this is mortgage brokering/finding. |
| Secondary market purchaser commitment/marketing fees | Within flat charge | Not separately chargeable to Veteran | Includes certain assignment/marketing-type charges. |
| Truth-in-lending (TIL) preparation fee | Within flat charge | Not separately chargeable to Veteran | Often appears as “TIL fee” or “disclosure prep.” |
| Lender inspections (except certain construction cases) | Within flat charge | Not separately chargeable to Veteran | VA lists lender inspections as not separately chargeable (except certain construction loan scenarios). |
| Postage and other routine mailing charges | Within flat charge | Not separately chargeable to Veteran | Note: special mailing on refinances has a separate conditional allowance. |
| Photographs | Within flat charge | Not separately chargeable to Veteran | VA lists photographs as not separately chargeable to the Veteran. |
| Interest rate lock / lock‑in fees | Within flat charge | Not separately chargeable to Veteran | Common CD labels: “rate lock,” “lock extension,” “market risk.” |
| Tax service / tax monitoring fees | Within flat charge | Not separately chargeable to Veteran | Often appears as “tax service.” |
| Trustee’s fees | Within flat charge | Not separately chargeable to Veteran | Often mis-labeled depending on state closing structure. |
| Lender notarizing its own signature | Within flat charge | Not separately chargeable to Veteran | VA lists this specifically as not separately chargeable. |
| Prepayment penalties | Veteran can’t pay | Prohibited (Veteran-paid) | VA prohibits charging the Veteran a prepayment penalty. |
| HUD/FHA inspection fees for builders | Veteran can’t pay | Prohibited (Veteran-paid) | Must be borne by the builder/sponsor. |
| Buyer‑broker charges (temporary VA variance) | Variance | Allowed by temporary variance (conditions apply) | Effective Aug 10, 2026: may be paid by Veteran where applicable; not financed; must be reasonable/customary and documented on CD + agreement. |
| State deviations / local variances (varies by state) | Variance | Only if VA-authorized for your state | Some fees (e.g., closing protection letters, specific municipal lien certifications, certain state taxes) can be allowed by VA’s state deviation list. |
| No matches. Try a different keyword (e.g., “doc prep”, “settlement”, “buyer broker”, “MERS”). | |||
VA requires lenders to document most itemized fees charged to the Veteran with invoices/receipts (with limited exceptions). If a line item is “rounded,” “estimated,” or unsupported, that’s a red flag.
Common itemized fees the Veteran may pay (quick list)
These are common categories VA allows the Veteran to pay as itemized charges (often third‑party), subject to reasonableness and documentation.
| Fee category | Status | Plain-language note |
|---|---|---|
| Appraisal (VA appraiser) | Allowed | VA appraisal fee is allowed; a second appraisal may be allowed if the Veteran requests it for reconsideration of value. |
| Credit report / AUS evaluation | Allowed | Credit report charges and certain AUS evaluation/merged report fees when applicable. |
| Title exam & title insurance | Allowed | Title exam/insurance and certain endorsements if required. |
| Recording fees (and recording taxes) | Allowed | County/municipal recording and applicable governmental recording taxes. |
| Prepaids & escrows | Allowed | Taxes/insurance/interest prepaids and initial escrow deposits as applicable. |
| Hazard/flood insurance | Allowed | Homeowners and flood insurance premiums when required. |
| Flood zone determination (third-party) | Allowed | Allowed when purchased from a qualifying third party; may include life-of-loan tracking when purchased at origination. |
| Survey | Allowed | When required by lender or Veteran (condo survey may require VA approval). |
| VA funding fee | Allowed | Due at closing or financed when permitted. |
| Special mailing (refinances) | Allowed | Allowed only if per‑diem interest savings exceeds special handling cost. |
Allowed itemized fees are typically third‑party services (title, recording, appraisal, insurance). Lender overhead is usually not itemized.
As of Jan 1, 2026, VA expects invoices/receipts for most itemized fees charged to the Veteran.
Costs that generally can’t be charged to the Veteran as separate “itemized” fees
VA provides examples of costs that are not separately chargeable to the Veteran as itemized fees and must be covered by the lender’s flat charge (or paid by someone else).
If your CD shows separate fees like processing, underwriting, doc prep, settlement, notary, tax service, or rate lock, VA often treats those as flat‑charge items (not extra Veteran‑paid line items).
| Fee / cost example | Status | Notes |
|---|---|---|
| Loan application/processing fees | Within flat charge | Often labeled “application,” “processing,” “admin.” |
| Underwriting fees | Within flat charge | Often “UW fee,” “lender review.” |
| Document preparation / loan papers / conveyancing | Within flat charge | Often “doc prep,” “doc fee,” “closing package.” |
| Loan closing/settlement/escrow fees | Within flat charge | Often mis-labeled as third‑party “settlement” charges. |
| Notary fees | Within flat charge | VA lists notary fees as not separately chargeable to the Veteran as itemized fees. |
| Routine postage/mailing charges | Within flat charge | Special mailing on refinances has a narrow conditional allowance. |
| Photographs | Within flat charge | VA-listed example. |
| Interest rate lock/lock-in fees | Within flat charge | Often “rate lock,” “lock extension.” |
| Tax service fees | Within flat charge | Often “tax service,” “tax monitoring.” |
| Trustee’s fees | Within flat charge | VA-listed example; varies by state practice. |
| Loan broker/finder fees (mortgage brokering) | Within flat charge | Different from real estate brokerage commissions. |
| Secondary market purchaser commitment/marketing fees | Within flat charge | Plus certain assignment/marketing-type charges. |
| Truth-in-lending disclosure prep fee | Within flat charge | Often “TIL fee.” |
| Lender inspections (except certain construction loans) | Within flat charge | VA-listed example; construction loans can have special rules. |
| Lender notarizing its own signature | Within flat charge | VA-listed example. |
Title work is treated under “title examination/title insurance.” Other attorney charges shouldn’t be added as separate Veteran‑paid line items (and state deviations can exist).
Prohibited fees (and what changed in 2026)
Fees VA says the Veteran generally may not pay, plus the temporary variance for buyer‑broker charges.
- Prepayment penalties.
- HUD/FHA inspection fees for builders (builder/sponsor pays).
VA issued a temporary local variance permitting certain buyer‑broker charges to be paid by the Veteran where applicable. Key conditions: not financed, must be reasonable & customary, documented on the CD, and supported by the buyer‑broker agreement/representation agreement.
Some states have VA-authorized deviations allowing specific fees (example: closing protection letters, certain municipal lien certifications). Always confirm using VA’s official deviations list (linked in Sources).
Seller concessions (VA 4% rule) — quick calculator
VA limits seller concessions to 4% of the established reasonable value. This is separate from the seller paying normal buyer closing costs (which must be reasonable and customary).
What fees can be included in the VA loan amount?
VA rules differ by loan type. This section is a practical summary to prevent the common “we rolled it in” mistake.
Typically, only the VA funding fee may be added to the loan amount. Other fees/points generally can’t be financed into the principal on these loan types.
Generally, points/fees are not added to the new principal, but they may be paid from cash proceeds. (Some energy efficiency improvement costs can be treated differently.)
IRRRLs can typically include allowable costs in the new loan amount, and VA has specific rules about points (e.g., limits for financed discount points).
If a fee is financed when it shouldn’t be, your “loan amount” and your 1% basis calculation can be wrong—then your Closing Disclosure can fail a VA review.
If the VA loan doesn’t close (refund rule)
VA guidance addresses what happens when a loan never closes—this is a frequent dispute point.
VA’s flat lender charge is assessed when a loan closes. If the loan does not close, VA guidance requires the lender to refund fees collected from the Veteran, but itemized third‑party out‑of‑pocket expenses already incurred (for example, appraisal/credit report) typically are not refunded.
Downloads & citation
Download the Fee Finder dataset (CSV) and copy a one‑click citation.
VA Loan Network. “VA Loan Allowable Closing Costs & Fees (Fee Finder + 1% Cap Tool).” Updated Dec 7, 2026. https://valoannetwork.com/va-loans/data/entitlement/allowable-fees/
This page summarizes VA guidance and VA circular updates. Your Closing Disclosure must also comply with other laws and local practice. If something looks off, ask the lender/title company for the VA basis and supporting invoice/receipt (where required).
Frequently Asked Questions
What is the VA “1% origination fee / flat charge” rule?
Are discount points included in the 1% cap?
If the funding fee is financed, what is the 1% based on?
Can a VA buyer pay a buyer‑broker fee?
Do itemized fees need invoices/receipts?
Can lenders charge underwriting, processing, or doc prep fees on VA loans?
Are title and recording fees allowed on VA loans?
Can closing costs be rolled into a VA purchase loan?
What if a VA loan doesn’t close—can the lender keep the 1%?
If a fee is “not allowed,” who can pay it?
Sources (primary + key updates)
Primary references used for fee categories, rules, and 2024–2026 policy updates.
- VA Lender’s Handbook (M26-7), Chapter 8 — Borrower Fees and Charges and the VA Funding Fee (PDF).
Open PDF - 38 CFR 36.4313 — Fees and Charges (regulatory text).
Open 38 CFR 36.4313 - VA Circular 26-24-14 — Temporary local variance for buyer-broker charges (effective Aug 10, 2026).
Open Circular 26-24-14 (PDF) - VA Circular 26-24-19 — Invoice/receipt requirements for itemized fees (effective Jan 1, 2026).
Open Circular 26-24-19 (PDF) - VA State Fees & Charges Deviations List (PDF) — state-specific exceptions/variances.
Open State Deviations List (PDF)
We normalize VA’s examples into searchable labels and common Closing Disclosure aliases. “Allowed by variance” means VA authorizes it either by state deviation or by a temporary/local variance (document it). This page is not legal advice; it’s a practical translation of primary VA sources.
