The VA loan allows you to include some of the closing costs in the total amount of your loan. The important thing is that you can include your financing fee in the total amount of the mortgage. While you'll pay more interest, this can help you get a home now. The VA allows lenders to charge up to 1 percent of the loan amount to cover origination, processing and underwriting costs.
They can choose between charging you a fixed origination fee of 1 percent or choosing between a series of fees, as long as they don't add up to more than 1 percent. If the lender doesn't charge the 1 percent flat rate, VA buyers may pay some fees and charges that otherwise wouldn't be allowed. Closing costs are an inherent part of any VA home loan. The processing and approval of a VA home loan application requires information and services from more than just your VA lender.
And if you don't worry, you'll pay more than you need to. VA loans, for example, include the VA funding fee for non-exempt borrowers as part of their closing costs. Opening fees usually cost between 0.5 and 1% of the mortgage (before factoring in discount points), and the VA limits the amount lenders can charge from VA borrowers to 1%. While you can't include all closing costs in your mortgage, the VA does allow you to include the VA funding fee in the total amount of the loan.
Fortunately, a special feature of VA loans is that they don't require a down payment, which can significantly reduce the initial total amount you would pay when you close your mortgage, even with the additional funding fee from the VA.
