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The VanguardEpique Realty

Buy with your VA benefit

Funding fee and closing costs

What the funding fee is, and how other costs work.

6 minute read

The funding fee

  • The funding fee is a one-time VA charge on most VA-backed loans. Some borrowers are exempt, including many receiving VA disability compensation.
  • It can be financed into the loan or paid at closing. The amount depends on the loan and your situation; use VA's current chart and your lender, not an old estimate.

Source: VA funding fee and loan closing costs

Other closing costs

  • On a purchase loan, other closing costs generally cannot be rolled into the loan the way the funding fee can.
  • Sellers may help. VA does not limit credits for closing costs but does limit seller concessions. Review your Loan Estimate with your lender.

Source: VA funding fee and loan closing costs; VA Purchase Loan

Sources

Official material this lesson draws on. Vanguard's explanation is educational; current official requirements govern.