Purchase a Home Qualifier  Refinance a Home Qualifier

Veteran Administration (VA) Allowable Fees

If you're a veteran considering a VA home loan, it's important to understand the fees that may be associated with the loan. While VA loans generally offer some of the most favorable terms and fees in the mortgage industry, there are still some fees that are allowable under VA guidelines. In this article, we'll take a closer look at allowable fees on a VA home loan and what they mean for veterans.

The first thing to know is that there are some fees that the VA prohibits lenders from charging veterans. These include items such as application fees, document preparation fees, and credit union and lender fees. These prohibitions help to ensure that veterans receive a fair and transparent loan process.

However, there are still some fees that are allowed under VA guidelines. These include:

  • Appraisal fees: The VA requires a property appraisal to determine the market value of the home being purchased. The veteran is responsible for the cost of this appraisal, which can range from a few hundred to several thousand dollars depending on the size and complexity of the property.
  • Title examination and title insurance: These fees are associated with verifying that the seller has the legal right to sell the property and that there are no outstanding liens or other issues that could impact the sale. While the veteran is responsible for these fees, they are often negotiable with the seller.
  • Recording fees: These fees are charged by local governments to record the transfer of ownership of the property. The amount of the fee varies by location but is generally a few hundred dollars.

It's important to note that these allowable fees are subject to change and may vary depending on the lender and location of the property. Veterans should carefully review their loan documents and work with a trusted mortgage broker who can provide clear explanations of all fees and costs associated with the loan.

While VA home loans offer some of the most favorable terms and fees in the mortgage industry, there are still some allowable fees that veterans should be aware of. By understanding these fees and working with a reputable lender, like 1st Choice Mortgage, veterans can ensure that they are getting the best possible deal on their home loan.

Below is a list of some, maybe not all of the fees that are allowed or not allowed on a VA Transaction, but when in doubt, call 1st Choice Mortgage, we are the VA Experts.

VA Home Loan Limits:  VA Mortgage Loan Limits

YES = Veteran CAN pay for item
NO = Veteran CAN NOT pay for item


  VA Purchase VA Refinance
ALTA Title Policy YES YES
Appraisal Fee YES YES
Appraisal Re-Inspection Fee
Associated with Escrow With hold
Commitment Fee NO NO
Compliance Fee YES YES
Courier Fee NO NO
Credit Report Fee YES YES
Discount Points YES YES
Doc Prep Fee NO NO
Escrow Fee NO NO
Flood Cert Fee YES YES
Hazard INS. Premium YES YES
Mortgage Insurance N/A N/A
Origination Fee YES YES
Owner's Title Policy NO N/A
Prepaid Interest YES YES
Processing Fee NO NO
Property Assessment NO NO
Real Estate Transaction Coordinator NO N/A
Reconvayance Fee NO YES
Recording Fee YES YES
Tax/Ins. Impounds YES YES
Tax Service Fee NO NO
Termite NO NO
Trustee Fee NO NO
Underwriting Fee NO NO
VA Funding Fee YES YES
Warehouse Fee NO NO



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