VA loans · 38 CFR 36.4313VA loan closing costs: which fees a veteran can and cannot pay
VA rules start from a ban: no charge may be made against, or paid by, the veteran borrower to make a VA-guaranteed loan except those the regulation allows, and the lender must certify it has not imposed any others (38 CFR 36.4313(a)). The veteran may pay reasonable and customary amounts for the VA appraisal and VA-designated compliance inspections, recording fees and taxes, the credit report, their share of current taxes and the initial escrow deposit, required hazard insurance, a survey required by the lender or veteran, title examination and title insurance, and a third-party flood zone determination – plus other items VA authorizes in advance as local variances. On top of that, a lender may charge a flat fee of no more than 1 percent of the loan amount, in place of all other origination costs not listed. On a purchase, closing costs and prepaid items cannot be financed into the loan. Anything else the lender or a vendor charges must be paid by someone other than the veteran – usually the seller or the lender.
What the veteran may pay (§36.4313(d)(1)–(2))
Appraisal and inspections
The VA appraiser's fee and VA-designated compliance inspections.
Recording
Recording fees, recording taxes and other recordation charges.
Credit report
The credit report.
Taxes and insurance
The veteran's share of current taxes and assessments, the initial escrow deposit, and required hazard insurance.
Survey and title
A survey required by the lender or veteran; title examination and title insurance.
Flood determination
The actual charge of a third party that guarantees the determination – not the VA appraiser's or lender's own.
1% flat charge
A lender flat fee of up to 1% of the loan, instead of all other unlisted origination costs.
Rules that catch TCs
- On a purchase, closing costs and prepaid items (taxes, insurance, ground rent) cannot be included in the loan amount (§36.4313(a)).
- No brokerage or service charge may be made against the veteran or the loan proceeds, except as the rule allows (§36.4313(b)).
- No charge for obtaining the VA guaranty, and no life insurance premiums paid from the loan (§36.4313(c)).
- VA can authorize other items as local variances (§36.4313(d)(1)(ix)) – ask the lender which current VA circulars apply.
What the TC checks
- The contract says who pays the fees the veteran may not pay.
- Compare the Loan Estimate and Closing Disclosure fee lines with the allowed list – ask the lender about anything else charged to the buyer.
- Line up the seller credit early if the seller is paying the non-allowable fees.
Questions veterans and agents ask
What fees can a veteran not pay on a VA loan?
Any charge not listed in 38 CFR 36.4313(d) or covered by the lender's 1% flat charge – those must be paid by someone else, such as the seller or the lender.
What is the 1% origination fee on a VA loan?
A lender may charge a flat fee of no more than 1% of the loan amount, in place of all other origination charges not specifically allowed (38 CFR 36.4313(d)(2)).
Can closing costs be rolled into a VA purchase loan?
No. On a purchase or construction loan, closing costs and prepaid items may not be included in the loan (38 CFR 36.4313(a)).
Related guides
ClosingCode lists the Closing Disclosure as a standard document on the deal, and you can add the Loan Estimate next to it – a fee the veteran should not pay is easy to spot before closing day.
Start free trialSource: 38 CFR 36.4313, Charges and fees (eCFR, read October 25, 2026).
General information, not legal or financial advice. VA can authorize other items by circular or local variance, and the lender applies the current VA rules. ClosingCode is software; it is not a lender. This guide is not a substitute for the advice or services of an attorney.