Standard
Points Buydown
Seller Credit
VA Closing Costs & Loan Fee Comparison Calculator (3 Scenarios)
Use this VA closing cost calculator to compare cash to close and monthly payment across three common VA lender quote structures: Standard, Points Buydown, and Seller Credit.
This tool is educational only. It is not a live quote, does not pull credit, does not use your SSN, and does not replace an official Loan Estimate or Closing Disclosure. It’s built to help you model real tradeoffs—upfront cost versus payment—before comparing lenders, writing an offer, or negotiating credits.
Best use: Compare lender quotes apples to apples.
- Use Standard for a typical lender quote.
- Use Points Buydown for lower-rate quotes that charge upfront points.
- Use Seller Credit for reduced-out-of-pocket or “no-closing-cost” structures.
If your lenders don’t fit these three structures, run the calculator once per lender, copy the link for each run, and compare them side by side in separate tabs.
Quick overview: what this shows (and what it doesn’t)
Each scenario card includes
- Monthly payment: P&I, estimated escrow (taxes + insurance), and total PITI.
- Modeled lender fees: realistic underwriting/lender charges plus discount points when applicable, with built-in floors and caps to avoid unrealistic totals.
- VA funding fee handling: estimated by usage and down-payment tier, with options to finance it, pay cash, or set to $0 if exempt.
- Estimated cash to close: down payment + borrower-paid fees + prepaids − modeled credits (plus funding fee if paid in cash).
- Simple educational APR: useful for comparison only; it will not match official disclosed APR.
This tool does not
- Replicate a Loan Estimate: lenders group and label fees differently, and official APR follows federal disclosure rules.
- Itemize all closing costs: title, settlement, recording, transfer taxes, HOA items, specialty insurance, and many local fees are excluded.
- Make credit or approval decisions: actual pricing depends on AUS findings, entitlement, property type, and lender overlays.
Inputs (Plain English)
Keep everything the same across lenders except the items that actually differ in their quotes.
| Input | What it affects | How to use it for comparison |
|---|---|---|
| Home price & down payment | Loan amount, funding-fee tier, cash to close | Hold constant across lenders. Test 0%, 5%, and 10% down to see funding-fee impact. |
| Credit tier | Modeled pricing adjustments (points proxy) | Use your realistic tier based on your profile; don’t optimize inputs to force better results. |
| First-time VA use | Funding fee percentage | Match your real status; this can materially change cash to close and loan amount. |
| Funding fee status (exempt vs not) | Whether the fee is modeled as $0 | If exemption is possible, run both versions to see the payment and cash impact. |
| Funding fee paid (financed vs cash) | Loan amount vs cash to close | Use the structure in the quote or your preference; financed lowers cash but raises payment slightly. |
| Rate & term | P&I payment and simple APR math | Use the exact rate from the lender’s quote or Loan Estimate. |
| Taxes & insurance (% of price) | Escrow and prepaid estimates | Use local reality if known; otherwise start conservative and refine later. |
| Seller plan | Modeled credits and concessions | Test negotiation strategies: no credits vs typical vs aggressive asks. |
VA Closing Costs Are Often Lower Upfront
VA funding fee and closing costs
VA Lender’s Handbook
HUD FHA mortgage insurance
CFPB Loan Estimate guide
VA loans can still have real closing costs, but the structure is usually more favorable. VA limits certain lender charged overhead fees, does not require monthly mortgage insurance, and lets many buyers finance the funding fee instead of paying it in cash. When you compare VA to FHA and conventional, the difference is often how predictable and negotiable the fees are.
Fee structure comparison in plain terms
| Fee type | VA loan | Conventional | FHA |
|---|---|---|---|
| Origination fee | Capped structure common | Market driven | Market driven |
| Program fee | Funding fee, if not exempt | None | Upfront mortgage insurance premium |
| Monthly mortgage insurance | None | Often required with low down | Monthly mortgage insurance required |
| Lender overhead fees | Many are limited | Often allowed | Often allowed |
- VA differentiator: The biggest difference is usually no monthly mortgage insurance, which can lower the payment even if the rate is similar.
- Upfront cost reality: VA can still have cash to close, but the biggest VA specific fee is often financeable, which changes your cash plan.
Fees VA limits when the lender charges 1%
- Overhead style fees: If the lender is charging a full origination fee, VA limits many extra admin charges that look like pure overhead.
- Common examples: Processing, document preparation, application fees, and similar line items should be questioned when they appear alongside a full origination fee.
- Third party is different: Appraisal, title, escrow, recording, and credit report costs are usually separate third party items, not lender overhead.
- Your best move: Compare the Loan Estimate line by line and ask what is lender charged versus third party, before you get near closing.
How to reduce out of pocket costs
- Finance the funding fee: On most purchases, the funding fee is the main cost that can be rolled into the loan balance, which reduces cash needed at closing.
- Use seller credits: Sellers can pay standard closing costs as negotiated, and VA also allows seller concessions up to 4% of reasonable value for certain items.
- Consider lender credits: A higher rate can sometimes be exchanged for a lender credit that covers some closing costs, which is useful when cash is tight.
- Watch prepaids: Prepaid taxes, insurance, and escrow setup can be a large part of cash to close, even when other fees look reasonable.
What to watch in today’s contract terms
- Buyer broker compensation: Who pays buyer broker fees is a contract term that can vary by market and listing structure, so confirm the plan in writing early.
- Concessions versus credits: Seller concessions have a specific VA cap for certain items, while seller paid closing costs can be structured as credits, so wording matters.
- Do not assume required seller payments: Sellers are not automatically required to pay your costs, it only happens if you negotiate it into the deal.
- Keep the file clean: The cleanest VA closings happen when the Loan Estimate, contract credits, and final Closing Disclosure all match with no last minute surprises.
FAQs
Are VA closing costs lower than FHA or conventional?
What VA fees can I finance into the loan?
What fees should I question on a VA Loan Estimate?
How to use this VA calculator to compare lender quotes
- Lock the deal terms first: set your purchase price, down payment, term, and taxes/insurance assumptions. Keep these constant for every comparison.
- Match your funding fee situation: select first-time vs subsequent use and whether you’re exempt. If you’re unsure, run both.
- Map each quote to the right structure:
- Standard = a “normal” quote without points/credits driving the structure.
- Points Buydown = a quote where you pay points to reduce rate/payment.
- Seller Credit = a quote/strategy where credits (seller or lender) reduce out-of-pocket costs.
- Run scenarios, then sanity-check your Loan Estimate: if a lender’s origination charges/points are wildly outside typical ranges, ask why and request a line-item explanation.
- Save your work: use Copy link to create a shareable version of your inputs for your spouse/agent, or to preserve different “lender runs” in separate tabs.
Understanding the numbers on each scenario card
- Payment (P&I)
This is your mortgage principal-and-interest payment based on the loan amount (purchase price minus down payment, plus financed funding fee if selected). Discount points are not financed; they are treated as an upfront cost. - Est. escrow
Monthly estimate for property taxes and homeowners insurance based on the yearly % you enter. This is a placeholder until you have a specific property and real insurance quote. - Total PITI
P&I + taxes + insurance. This is your rough all-in housing payment (not including HOA or specialty insurance). - Total lender fees
A modeled bundle of common lender/underwriting/admin charges plus discount points (when applicable). This tool uses a floor and an illustrative cap to keep scenarios realistic. Your lender’s exact fees can differ. - Cash to close
Down payment + borrower-paid lender fees + estimated prepaids/escrow setup − modeled credits (plus funding fee if you selected “paid at closing”). This answers: “How much cash do I need to close?” - APR (est.)
A simplified APR intended for scenario comparison. Your official APR on the Loan Estimate / Closing Disclosure is calculated using federal disclosure rules and lender-specific fee mapping, and will differ.
If you’re comparing multiple lenders, pair this tool with their Loan Estimates and use it as a structured way to think about tradeoffs: Compare VA loan offers.
What counts as “VA closing costs” in this calculator?
On this page, “closing costs” are modeled as the parts that usually drive the biggest decision-making swings when you’re comparing quotes:
- Modeled lender fees + points
Underwriting/admin/processing-style fees and discount points (when applicable). These are treated as paid at closing, not rolled into the loan. - VA funding fee (purchase)
Modeled as either financed into the loan or paid at closing (or $0 if exempt). - Estimated prepaids / escrow setup
A simplified placeholder based on your taxes & insurance % to estimate escrow and a basic “escrow setup” amount.
Important: this tool does not itemize every third‑party and state/local fee (title/settlement, recording, transfer taxes, HOA items, specialty insurance, and many local charges).
VA funding fee: how this calculator treats it
The VA funding fee is a one‑time charge that helps support the VA loan program (VA loans typically do not have monthly mortgage insurance). This calculator estimates a purchase funding fee using your “first vs subsequent use” selection and down‑payment tier, then assumes the fee is financed into the loan by default unless you switch it to “paid at closing” or mark it exempt.
| VA usage | Down payment | Estimated funding fee (purchase) |
|---|---|---|
| First use | < 5% | ~2.15% |
| First use | 5% – 9.99% | ~1.50% |
| First use | ≥ 10% | ~1.25% |
| Subsequent use | < 5% | ~3.30% |
| Subsequent use | 5% – 9.99% | ~1.50% |
| Subsequent use | ≥ 10% | ~1.25% |
These figures are simplified purchase estimates and can change. Other loan types (IRRRL/streamline, cash-out) and certain borrower categories can use different charts.
Seller credits, concessions & “no-closing-cost” VA loans
This calculator helps you test how credits can reduce out-of-pocket costs—without assuming fairy-tale “free closing” math.
- Seller credits vs seller concessions: In practice, people use “seller credits” loosely. VA guidelines differentiate between customary closing costs and “seller concessions” (certain extras). Concessions are commonly discussed as being limited (often around 4% of reasonable value). Lender overlays may be tighter.
- Modeled concession behavior: The “Seller Credit” scenario is designed to show what happens when credits reduce borrower-paid costs within typical caps—especially when you’re trying to minimize cash to close.
- Standard vs aggressive plans: “Standard” represents typical negotiated credits. “Aggressive” represents pushing credits/concessions toward the maximum room allowed under common rules of thumb and lender overlays.
Ways to lower your VA cash to close (using this tool)
- Negotiate targeted credits that actually move the number.
Use the “Seller Credit” scenario to estimate a realistic target credit amount and understand which costs it can offset. - Test the 5% and 10% down thresholds.
Even small changes in down payment can reduce the funding fee tier, which changes both cash to close and financed amount. - Compare points vs your time horizon.
If “Points Buydown” barely reduces PITI but adds significant upfront cost, points may not pencil out unless you expect to hold the loan long enough. - Use realistic taxes & insurance assumptions.
Escrow is often the #1 reason people underestimate payment. Start with a conservative % if you don’t have property-specific numbers yet, then refine. - Verify any funding-fee exemption early.
If you qualify, removing the funding fee can materially reduce both the loan amount and payment.
Frequently Asked Questions
Is this a true compare three lenders calculator?
It compares three common quote structures, standard, points, and credit driven, using consistent assumptions. To compare three specific lenders, run one scenario per lender with their rate and points, then save each run using the Copy link output.
What does this VA closing cost calculator include?
It estimates monthly PITI, meaning principal and interest plus taxes and insurance escrows, then models lender fees or points, a purchase funding fee estimate, and an estimated cash to close figure for scenario comparison and budgeting.
Does it include title, appraisal, recording, transfer taxes, and every local fee?
No. Those costs vary widely by state, county, title company, and property type, so this tool focuses on comparable scenarios. Use it to compare rate and fee structures, then verify full line items with quotes and a detailed closing costs guide.
Can I finance VA closing costs on a purchase?
Usually, you can finance the VA funding fee on a purchase, which raises the loan balance and payment. Most other closing costs are paid at closing, often reduced with seller credits, lender credits, or down payment assistance when program rules allow.
Can the VA funding fee be financed?
Often yes. Financing the funding fee increases the loan amount and monthly payment but reduces cash due at closing. This calculator assumes financed by default, and you can switch to paid at closing to compare the payment versus cash to close tradeoff.
I am exempt from the VA funding fee, what should I do here?
Select Exempt so the funding fee is treated as zero. That can reduce both the financed balance and the monthly payment, and it usually lowers cash to close as well. Confirm exemption status with your lender using your VA eligibility documentation.
Are seller credits capped on VA loans?
Seller credits can often cover customary closing costs, but certain extras called seller concessions are commonly discussed as limited, often around four percent of reasonable value. Lender overlays can be stricter, so confirm how credits are applied on your Loan Estimate.
What credit score do I need for a VA loan?
The VA does not publish a minimum credit score, but lenders set their own floors and overlays. Many lenders price more favorably around 620 and above. This tool uses a minimum assumption so scenarios stay realistic and comparable across quote structures.
Why is the APR here different from my lender’s APR?
This page shows a simplified APR for educational comparison using modeled fees and points. Your official APR on the Loan Estimate and Closing Disclosure is calculated under federal rules and depends on lender specific fee mapping and timing assumptions for your file.
Should I pay points or negotiate credits?
Use Standard versus Points Buydown to see payment savings from paying points, and use Seller Credit to see how credits reduce cash to close. Then compare those benefits against your expected time in the home and the breakeven point for upfront costs.
Can I use this for an IRRRL streamline or cash out refinance?
This tool is designed for a VA purchase scenario. Refinance products often use different fee treatment, funding fee rules, and closing cost structures, so the outputs will not match refinance Loan Estimates. Use a refinance specific calculator for IRRRL or cash out scenarios.
What should I use for taxes and insurance percent of price?
If you do not have property specific numbers, start with a conservative local placeholder so you do not understate payment. Then replace it with the county tax estimate and a real insurance quote once you have an address, because escrows can change affordability materially.
What this tool is not
- A rate quote, credit decision, or commitment to lend.
- A substitute for a Loan Estimate or Closing Disclosure.
- A full line-by-line quote of every possible cost (HOA dues, transfer taxes, specialty insurance, and many local fees are not modeled here).
When you’re ready for precise numbers tied to a specific property and your full file, request official quotes and compare them side-by-side.
Start your VA loan comparison to see exact fees, credits, and terms from participating lenders.
Disclosure: Educational estimates only. Outputs may not reflect current VA guidelines, lender overlays, or your exact pricing. Eligibility, approval, and final costs depend on full underwriting, AUS findings, and property conditions. Always review your official Loan Estimate and Closing Disclosure for binding terms and costs.
