VA Closing Cost Calculator
Estimate your VA loan closing costs and the cash you need to close: lender fees, appraisal, title, prepaids, the funding fee and seller credits. Free, private, no signup.
Breakdown
| Item | Amount |
|---|
Next: check the monthly payment in the VA loan payment calculator →
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Default amounts are typical assumptions, not quotes. Funding fee rates from the U.S. Department of Veterans Affairs (effective April 7, 2023, last checked October 2026). Your Loan Estimate has the real figures.
What VA closing costs include
A VA loan can have no down payment, but closing still costs money. The calculator groups the costs the way a Loan Estimate does:
- Lender charges. The VA lets a lender charge a flat fee of up to 1% of the loan instead of itemizing its own costs. Discount points, which buy a lower rate, are optional and negotiable.
- Third-party charges. The VA appraisal (its fee varies by state), title insurance and settlement, recording fees and the credit report.
- Prepaids and escrow. Interest from closing day to the end of the month, the first year of homeowners insurance, and a starting balance in your escrow account for taxes and insurance.
- The VA funding fee. The only cost on a VA purchase loan that can be added to the loan, so it usually needs no cash. Exempt borrowers pay nothing.
Example: cash to close on a $350,000 home
A first-time VA buyer with no down payment, a 6.25% rate, the funding fee added to the loan and the default amounts above:
| Item | Amount |
|---|---|
| Lender origination charge (1% of $350,000) | $3,500 |
| Appraisal, title, recording and credit report | $2,800 |
| Prepaid interest (15 days on $357,525) | $918 |
| First year of homeowners insurance | $1,800 |
| Escrow deposit (2 months insurance + 3 months tax) | $1,175 |
| Cash to close with no seller credit | $10,193 |
| VA funding fee (2.15%), added to the loan | $7,525, no cash |
Closing costs and prepaids come to about 2.9% of the price. If the seller agrees to cover the $6,300 of lender and third-party costs, the buyer brings about $3,893, and that credit does not count toward the 4% concession limit ($14,000 on this home). The same buyer paying the funding fee in cash would need $7,525 more.
Seller credits and the 4% limit
The VA lets sellers and builders pay a buyer's closing costs with no limit on ordinary closing costs. What the VA caps at 4% of the home's reasonable value are seller concessions: extras such as paying the buyer's funding fee, prepaying taxes and insurance, or paying off the buyer's debts. The calculator applies a seller credit to closing costs first, then to prepaids, and adds a seller-paid funding fee, so you can see how much of the 4% you would use.
A credit can only cover real costs. If it is bigger than your costs, the extra is lost, so a price reduction may be the better ask. More in our VA closing costs guide. Source: VA.gov funding fee and closing costs.
How to lower your cash to close
- Ask at least three lenders for a Loan Estimate and compare the origination and title lines.
- Negotiate a seller credit in your offer, sized to your actual costs.
- Add the funding fee to the loan instead of paying it in cash, or check whether you are exempt.
- Close near the end of the month to reduce prepaid interest.
Frequently asked questions
How much are closing costs on a VA loan?
Closing costs and prepaids often add up to roughly 2% to 4% of the home price, not counting the funding fee. On a $350,000 home with typical assumptions that is about $10,200, while the funding fee ($7,525 on first use with no down payment) is usually added to the loan instead of paid in cash.
Can I roll closing costs into a VA loan?
On a VA purchase loan, only the funding fee can be added to the loan. Other closing costs are paid at closing, by you or through a seller credit.
Can the seller pay all my VA closing costs?
Yes. The VA puts no limit on seller credits for ordinary closing costs. The 4% limit applies to seller concessions, such as paying your funding fee, prepaying taxes and insurance, or paying off your debts.
What is the VA 1% origination fee?
Instead of itemizing its own costs, a lender may charge a VA borrower a flat fee of up to 1% of the loan amount. Discount points to lower the rate are separate and optional.
How much is a VA appraisal?
The VA sets the appraisal fee by state and region, so it varies. Many areas fall in the $600 to $900 range for a single-family home. Your lender will tell you the fee for your area.
What are prepaids on a VA loan?
Prepaids are not fees: they are costs paid in advance, such as interest from closing to the end of the month, the first year of homeowners insurance and the starting balance of your escrow account for taxes and insurance.
More tools and guides
VA Loan Payment Calculator — monthly payment and amortization schedule.
VA Loan Affordability Calculator — how much house can you afford?
VA Funding Fee Calculator — first and subsequent use rates.
VA Entitlement Calculator — remaining entitlement and the largest $0 down loan.
VA Residual Income Calculator — check the VA residual income test for your family.
VA Loan Closing Costs Guide — what you pay and what the seller can cover.
VA vs Conventional Loan Calculator — compare payments, the funding fee vs PMI and total cost.
VA Loan DTI Calculator — your debt-to-income ratio against the 41% benchmark.
VA Loan Guides — eligibility, limits, IRRRL, FHA and more.