If you’ve served in the military and are thinking about buying a home, figuring out…
VA Loan Closing Costs: What Veterans in Collin County Need to Know
Buying a home with your VA loan benefit is a major step, but the list of fees you’ll see at closing can be confusing and sometimes a little overwhelming. **Closing costs on a VA loan include the VA funding fee, lender and third-party charges, plus some negotiable fees—and not everything can be paid by the veteran.** In this post, you’ll learn what’s actually required, which costs can be covered by sellers or others, how the numbers typically look in Collin County, and the important rules you won’t find in most marketing flyers.
Key Takeaways
- Purpose: VA loan closing costs cover lender, title, and government fees required to complete your home purchase.
- Requirements: Some costs—like the VA funding fee—must be paid by the buyer unless exempt, while others can be negotiated or paid by the seller.
- Timeline: You’ll usually see your final closing figures about three days before closing on your home.
- Best For: Veterans and eligible service members buying homes in Collin County and surrounding areas.
Quick Answers
- Does the VA set a cap on closing costs? Yes—VA rules limit certain origination charges and restrict what you can pay versus what can be paid by others.
- Can sellers pay closing costs on VA loans? Sellers can pay typical closing costs and extra “concessions” up to a percentage of the home’s price.
- What is the VA funding fee? It’s a one-time fee most borrowers pay, but some are exempt due to disability benefits or other special status.
- Are VA closing costs lower than conventional loans? Sometimes, but not always. Some fees are unique to VA loans, while others are similar or even lower compared to conventional loans.
- Can I finance my closing costs? You can finance the VA funding fee, but most other closing costs need to be paid at closing unless covered by the seller or a lender credit.
What Are VA Loan Closing Costs?
VA loan closing costs include everything needed to process and finalize your home purchase—lender fees, title charges, third-party services, and required pre-paids (like taxes and insurance). Unlike some other loans, the VA is very specific about what fees can and can’t be charged to veterans.
At Pam Thorn (NMLS# 1629149), I help buyers in Plano, Frisco, Dallas, Prosper, and throughout Collin County sort out the details, so let’s run the real numbers on what you might see.
Breaking Down Typical VA Closing Costs
- VA Funding Fee: A one-time charge most borrowers pay to help offset the cost of the VA loan program. This fee varies based on your down payment, whether it’s your first use, and if you qualify for an exemption (e.g., disability status).
- Lender Fees: Can include origination or underwriting, but VA limits these—typically no more than 1% of the loan amount for origination.
- Appraisal Fee: The VA requires a specific appraisal to ensure the home meets its property standards.
- Title Company Fees: Cover title search, title insurance (both lender and owner’s policy), and related services.
- Recording Fees: Paid to the county to officially record the new ownership and lien.
- Prepaid Items: Advance payments for homeowners insurance, property taxes, and possibly some interest or other escrows.
- Other 3rd-Party Fees: May include credit report, flood certification, or pest inspection (in some states, the VA itself pays for pest inspection, but this isn’t the case in Texas as of 2026).
What Can’t the Veteran Pay?
Here’s what nobody tells you about closing costs on VA loans: there are actually some fees that the VA says you, as the buyer, can’t be asked to pay. For example, you aren’t allowed to pay certain “junk fees” like attorney charges for preparing loan documents, brokerage fees, or prepayment penalties. If you see those on your estimate, let me know—those should get flagged right away.
Who Actually Pays? (VA Rules on Seller and Lender Contributions)
While you are responsible for your costs, VA guidelines allow the seller to cover all traditional closing costs, plus additional “concessions” up to a set percentage of the purchase price. So if you’re negotiating in Collin County or nearby spots like McKinney, Allen, or Prosper, the seller can chip in to help reduce your out-of-pocket expense. Sometimes you’ll also see lenders offering credits—but just know, those usually come with a slightly higher rate.
And remember, while the VA funding fee can be rolled into your mortgage, other fees usually have to be paid upfront unless someone else is covering them.
Negotiating Seller Credits
It’s not unusual for the seller to pay part or all of the closing costs as an incentive, especially in certain markets. As always, no pressure, just information—what works for your specific scenario can depend on your offer terms and the local market.
How Much Should You Budget in Collin County?
Every purchase is different, but most VA buyers should expect to pay a combination of the above fees. The VA funding fee is often the largest single cost, unless you’re exempt. The other fees are typically a percentage of the home price, and can vary depending on the transaction details and the professionals involved.
I know, it’s a lot. That’s literally what I’m here for—helping you go through the fee sheets and see what’s required, what’s negotiable, and what you can ask to have paid by the seller. If you want a more precise estimate, just ask me anything and we can walk through what your scenario would look like.
Comparison: VA vs. Conventional Loan Closing Costs
| Fee/Cost Type | VA Loan | Conventional Loan |
|---|---|---|
| Funding/Guarantee Fee | VA funding fee (may be exempt) | No VA funding fee; possible private mortgage insurance (PMI) |
| Origination Fee | Capped at 1% of loan | Often flexible; varies by lender |
| Appraisal | VA-specific appraisal, set by VA schedule | Conventional appraisal; prices can vary |
| Seller Concessions | Allowed up to a certain percentage | Allowed, but with different limits |
What to Watch for at Closing
Watch for your Closing Disclosure—you’ll get this at least three business days before closing. This document outlines every cost, credit, and fee down to the penny, so review it closely. If you see any fees you don’t recognize or aren’t sure about, let’s review them together to make sure everything’s compliant and accurate for your VA loan.
Next Steps: Planning for Closing Costs
The sooner you know your numbers, the better prepared you’ll be at offer time. We can sit down (or Zoom, or just trade emails) and look at what your closing sheet will really look like. This isn’t a one-size-fits-all process, and VA loan rules do change from time to time.
Want to understand your options in Collin, Dallas, or Denton counties—or even if you’re further out in Los Angeles County, San Luis Obispo, or the Oklahoma City area? Reach out anytime. I’m happy to help you compare what a VA versus a conventional scenario looks like, or help you talk through how seller credits actually work with current local market trends.
Frequently Asked Questions
Are closing costs lower on VA loans compared to other loan types?
VA loans often have competitive closing costs due to limitations on what can be charged, but you will still pay for third-party fees and the VA funding fee (unless exempt). The total may be similar to or slightly less than a comparable conventional loan, depending on your scenario.
Can the VA funding fee be waived?
Some veterans and active-duty service members are exempt from the VA funding fee, most commonly due to a service-connected disability. If you think you may qualify, provide your Certificate of Eligibility so the exemption can be confirmed.
How can I reduce my out-of-pocket closing costs?
It’s common to ask the seller for concessions, or to use lender credits, to help cover some or all of your closing costs. Not every scenario makes this possible, so it’s best to plan early and review your numbers with your lender and realtor team.
Does the seller always pay closing costs in a VA transaction?
No—the seller is allowed but not required to contribute. Whether they pay and how much depends on your negotiation and the specifics of your purchase contract.
When will I know my final closing costs?
You’ll receive your Closing Disclosure at least three business days before your scheduled closing date. This document lists your actual total costs and how much you’ll need to bring to closing.
This is educational and not financial advice. Loan programs and guidelines can change. Talk with a licensed mortgage professional about your specific scenario.
About the Author
Pam Thorn
Loan Officer at CMG Home Loans · NMLS #1629149
My 20+ years in real estate include property management and title insurance, so I understand the many factors that go into helping you with one of the most important purchases of your life.
Specializes in: Conventional loans, All-in-One loans, VA loans
Licensed in: CA, FL, OK, TX
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