Do I Have to Pay Closing Costs with a VA Loan?

One of the biggest advantages of using a VA loan is the ability to purchase a home with no down payment—a benefit that saves military families thousands of dollars upfront. But many buyers still wonder: Do I have to pay closing costs with a VA loan?

The short answer is yes—but with some big benefits and protections you won’t find with other loan types.

6955 S. West St. Godwin, NC 28344

What Are Closing Costs?

Closing costs are the fees and expenses you pay at the end of the home-buying process to finalize your loan. They typically include things like:

• Appraisal fee

• Loan origination fee

• Title search and title insurance

• Recording fees

• Taxes or prepaid items (like homeowners insurance and property taxes)

In North Carolina, these costs usually range from 2–5% of the purchase price.

What Makes VA Closing Costs Different?

The Department of Veterans Affairs has specific rules that limit what a veteran or service member can be charged at closing. For example:

• No “junk fees” – Lenders can’t tack on unnecessary charges.

• Capped origination fee – Lenders can charge no more than 1% of the loan amount for origination.

• Certain costs can’t be paid by the buyer – The VA prohibits veterans from paying certain fees, like attorney services for the lender, escrow fees, or settlement charges.

This means your closing costs are often lower than with a conventional loan.

Can Sellers Help Pay Closing Costs?

Yes! With a VA loan, the seller can contribute up to 4% of the purchase price toward your closing costs. These contributions can cover:

• Prepaid property taxes and insurance

• The VA funding fee (if applicable)

• Other loan-related expenses

This flexibility often allows buyers to come to closing with very little out-of-pocket.

Key Takeaway

With a VA loan, you do have closing costs, but they’re generally more affordable, more limited, and more negotiable compared to other loan programs. By working with the right agent and lender, many of my clients pay significantly less at the closing table than they expect.

Frequently Asked Questions About VA Loan Closing Costs

1. Can I roll my closing costs into my VA loan? Generally, you can roll the VA funding fee into your loan, but most other closing costs need to be paid upfront.

2. Can the seller pay all my closing costs? Sellers can cover some or all of your closing costs, but VA guidelines limit their contribution to 4% of the purchase price.

3. Do I still need money upfront if I’m using a VA loan? Yes, you should plan to have some money set aside for earnest money, inspections, and any remaining closing costs.

4. Is the VA funding fee part of closing costs? Yes, it’s considered part of the closing costs. However, disabled veterans are exempt from paying this fee.

5. How much should I expect to pay in closing costs near Fort Bragg, NC? It varies depending on the home price, but most buyers pay between $3,000–$7,000—often less when we negotiate seller concessions.

👉 If you’re preparing to use your VA loan benefit, let’s talk strategy. I’ll walk you through ways to minimize out-of-pocket costs and connect you with lenders who know how to close fast and smooth.

📲 Call/text me at 910-916-9315 or email cassie@birchandbeamrealty.com to get started.

And remember—Close with Cassie.