Generally the Closing Cost on a VA loan should be similar to other loans such as FHA and Conventional.  In many case the VA closing cost may actually be lower.  Veterans are encourage to consult with different Lenders to assess the total cost.

What Fees Can the Veteran Pay?

• Origination Fee - Not to exceed 1%
• Discount Points - Reasonable. See IRRL for limitations.
• The veteran may pay any or all of the following itemized fees and charges, in amounts that are reasonable and customary.
• Appraisal and Compliance Inspections - The veteran can pay the fee of a VA appraiser and VA compliance inspectors.
• The veteran can also pay for a second appraisal if he or she is requesting reconsideration of value.
• The veteran cannot pay for an appraisal requested by the lender or seller for reconsideration of value.
• Recording Fees - The veteran can pay for recording fees and recording taxes or other charges incident to recordation.
• Credit Report - The veteran can pay for the credit report obtained by the lender.
  On Loan Prospector cases, the veteran may pay the evaluation fee of $50 in lieu of the charge for a credit report. For "Refer" cases, the veteran may also pay the charge for a merged credit report, if required.
• Prepaid Items - The veteran can pay that portion of taxes, assessments, and similar items for the current year chargeable to the borrower and the initial deposit for the tax and insurance account.
• Hazard Insurance - The veteran can pay the required hazard insurance premium. This includes flood insurance, if required.
• Flood Zone Determination - The veteran can pay the actual amount charged for a determination of whether a property is in a special flood hazard area, if made by a third party who guarantees the accuracy of the determination.
• The veteran can pay a charge for a life-of-the-loan flood determination service purchased at the time of loan origination.
• Survey - The veteran can pay a charge for a survey, if required by the lender or veteran.
  Any charge for a survey in connection with a condominium loan must have the prior approval of VA.
• Title Examination and Title Insurance - The veteran may pay a fee for title examination and title insurance, if any.
  If the lender decides that an environmental protection lien endorsement to a title policy is needed, the cost of the endorsement may be charged to the veteran.
• Special Mailing Fees for Refinancing Loans - For refinancing loans only, the veteran can pay charges for Federal Express, Express Mail, or a similar service when the saved per diem interest cost to the veteran will exceed the cost of the special handling.
• VA Funding Fee - Unless exempt from the fee, each veteran must pay a funding fee to VA.
• Other Fees Authorized by VA - Additional fees attributable to local variances may be charged to the veteran only if specifically authorized by VA.

 The lender may request VA to approve such a fee if it is

• normally paid by the borrower in a particular jurisdiction, and
•  considered reasonable and customary in the jurisdiction.

Whenever the charge relates to services performed by a third party, the amount paid by the borrower must be limited to the actual charge of that third party.

In addition, the borrower may not pay a duplicate fee for services that have already been paid for by another party.

Examples:

• An appraisal is completed on a property and paid for by a prospective purchaser, but the sale is never completed. A second purchaser applies for a loan before the validity period of the Certificate of Reasonable Value (CRV) expires. The lender uses the same CRV. The lender may not charge the second purchaser an appraisal fee if no second appraisal is ordered.

• A survey or flood zone determination, if the lender elects to use an existing survey or flood determination.

 The following fees and charges may be included in an IRRL:

• The VA funding fee, and

• any allowable fees and charges such as, all allowable closing costs, including the lender's flat 1% charge.

However, There Is One Limitation

While the borrower may pay any reasonable amount of discount points in cash, only up to two discount points can be included in the loan amount.