VA Non-Allowable Fees

Military Family in Front of New Home

When you use your VA loan to buy a house you'll have buyer closing costs and closing costs you can't pay (even if you want to pay) called VA Non-Allowable Fees.  (aka VANA Fees) 

In this post, we'll cover:

  1. VA Non-Allowable Closing Costs
  2. VA Allowable Closing Costs
  3. VA Loan Closing Costs 

Your VA home loan is loaded with many advantages other loan types don't have.  For instance, the VA does not allow homebuyers to pay certain fees known as VA non-allowable closing costs.  Of course, minimizing the impact of buyer closing costs is very helpful to anyone.  Buyer closing costs generally range between 2%- 4% of a homes sales price not including the VA funding fee.  

VA Non-Allowables include:

  • Broker Commission
  • Broker Fees
  • Mortgage Broker Fee
  • Lender Document Fees
  • Transaction Coordinator Fees
  • Notary Fees
  • Pre-payment Penalties
  • Loan Closing or Settlement Fees
  • Document Preparation Fees
  • Escrow Fees
  • Pest/ Termite Inspection (Except in Certain States)
  • HUD/ FHA Inspection Fee From a New Home Builder
  • Trustee's Fees or Charges
  • Tax Service Fees

For a full list of VA non allowable fees, please consult with your local loan officer.

VA Allowable Closing Costs Include:

  • Appraisal
  • Title Report/ Title Insurance Policy
  • Recording Fee
  • Credit Report Fee
  • Flood Certification (where applicable)
  • Survey Fee (where applicable)
  • Attorney Fees (States that Require an Attorney)
  • Flood Insurance
  • Homeowner's Insurance
  • VA Funding Fee (veteran's with a 10% or greater service connected disablity are exempt from VA funding fee)
  • Home Inspection

For a full list of VA allowable fees, please consult with your local loan officer.

VA Loan Closing Costs

Active duty and veterans still have buyer closing costs when using their VA loan.  It's prudent to estimate between 2%-4% of the price of the home you want to buy for your buyer closing costs.

VA Approved Lenders in Las Vegas, NV (images are clickable)

Bill Merren Senior Loan Consultant and US Army Veteran

Josh Coomer is Loan Officer with Mann Mortgage

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