You can negotiate closing costs on a VA loan, but only some of them. By the end of this guide you will know which VA closing costs are fixed, which are negotiable, and which a veteran may not be charged at all. You will also know how to get seller credits and lower fees in writing. Duane Buziak, NMLS #1110647, is a VA loan specialist licensed in Virginia, Florida, Tennessee, and Georgia. As an independent broker with 500+ wholesale lenders and a 500 FICO floor on VA loans, he has more room to negotiate on your behalf than a single-shelf direct lender. Have three things ready: your Certificate of Eligibility (a broker can pull it), a rough price range, and a recent pay stub or other income record.
Step 1: Sort Your Closing Costs Into Fixed, Negotiable, and Prohibited
Most of the confusion about VA closing costs comes from treating them as one lump. They fall into three groups, and your effort should go only where there is room to move.
- Fixed: The VA funding fee is set by VA as a percentage of the loan. It varies with your down payment and whether this is your first or a subsequent use, and it is waived for veterans receiving VA disability compensation and certain others. Recording fees and transfer taxes are set by local government. Check the current table on the VA funding fee and closing costs page, because percentages can change and should be confirmed as of 2026.
- Negotiable: Origination, processing, and underwriting fees, discount points, title and settlement fees, fees from vendors you can shop for, and your homeowner’s insurance premium.
- Prohibited for the veteran: VA restricts what a veteran may be charged. Under the 1% flat charge rule, origination-type charges are capped at 1% of the loan amount. Items such as the lender’s attorney fees and additional broker or finder fees cannot be passed to you. The details are in VA’s Lenders Handbook (VA Pamphlet 26-7), Chapter 8, so check the current wording there.
Two misconceptions are worth clearing up now. VA does not “pay” your closing costs; it guarantees part of the loan. And the funding fee is not negotiable, no matter who quotes it.
Now rank every line by dollar size. Prepaids and escrows are often the biggest item, but they are mostly real obligations (taxes and insurance) rather than fees. Among the negotiable lines, origination and title usually come first. Spend your effort in that order, not on a $75 courier fee.
Step 2: Get Loan Estimates Without Damaging Your Credit
The Loan Estimate is a standardized three-page form that shows your rate, monthly payment, and itemized closing costs. The CFPB’s Loan Estimate explainer walks through each section. Quotes are comparable only when they use the same loan amount, the same rate lock period, and the same number of points.
The usual obstacle is the credit pull. Duane Buziak uses the NoTouch Credit Pull, a soft credit pull mortgage option: a soft-pull pre-qualification that shows real pricing without a hard inquiry, so your score is not affected while you compare. A standard pre-approval triggers a hard inquiry. A mortgage pre approval without hard pull lets you gather numbers first and decide later. Mortgage inquiries within a short shopping window are usually treated as one for scoring, but a no hard inquiry mortgage pre approval removes the question entirely.
By contrast, direct lenders such as Rocket and Movement have typically required a full application and a hard pull before issuing firm numbers. That is the pattern as of 2026, but confirm it with each company, since processes change.
The most common mistake is comparing quotes that are not normalized. Suppose one quote is 6.5% with 0 points and another is 6.25% with 2 points. The second looks better until you add the cost of the points. On a $400,000 loan, 2 points is $8,000 paid up front. Always compare the rate, the points or credits, and the total closing costs together.
Request at least three written Loan Estimates for the same scenario, ideally on the same day so the market has not shifted between them.
Step 3: Use Broker Independence to Create Real Price Competition
A direct lender prices from one rate sheet. Duane Buziak submits the same scenario to multiple wholesale investors from a network of 500+ and puts the rate, lender credit, and fee structure side by side. When one investor’s fee or rate is off, another’s is not, and that competition is where your leverage comes from.
Credit flexibility is part of this too. VA itself sets no minimum score, so investor overlays decide, and a broker can reach investors that go down to a 500 FICO. Be realistic: at low scores, rates rise and fewer investors participate. That is a pricing trade-off, not a guarantee of approval.
| Company | FICO Min (VA) | Lender Type | Loan Shelf | Fees | Soft Pull Pre-Approval | Down Payment Options |
|---|---|---|---|---|---|---|
| VA Loans Pro by Duane Buziak | 500 (investor overlays apply) | Independent broker | 500+ wholesale lenders: VA, FHA, USDA, Conventional, DSCR/Non-QM, Bank Statement, ITIN | Broker-negotiated and shop-able; itemized in writing | Yes, NoTouch Credit Pull | 0% down on VA; other programs and DPA options where eligible |
| Veterans United | 620 (published standard; verify current) | Direct lender | Single VA-specialty shelf | Origination fee; request itemized quote | Typically application-based (confirm) | 0% down on VA |
| Rocket | Varies, no public VA-specific floor | Direct lender | Single shelf | Varies by scenario | Typically hard pull before firm numbers (as of 2026; confirm) | 0% down on VA |
| Movement | 580 (verify current) | Direct lender | Single shelf | Varies by scenario | Typically full application first (confirm) | 0% down on VA |
Credit where it is due: Veterans United focuses only on VA lending, which gives it deep process experience. The case for a broker is leverage, not inexperience. Duane Buziak ranks #114 nationally on the Scotsman Guide Top Originators list and was named VA Broker of the Year for 2024 and 2025. The NoTouch Credit Pull also means you do not give up digital convenience to get independent pricing.
Then use the Dare to Compare challenge: bring any written Loan Estimate, from anyone, and Duane Buziak will compare it line by line against what the wholesale network can produce.
Step 4: Challenge the Fees That Are Actually Negotiable
With competing quotes in hand, go through the Loan Estimate’s sections one at a time. Section A holds origination charges. Section B covers services you cannot shop for, and Section C covers services you can. Ask for each to be itemized, then use language like this:
- “I have a written quote with a lower origination charge. Can you reduce or waive yours to match?”
- “Which Section B fees are set by third parties, and which are your own markups?”
- “Can you re-issue the Loan Estimate with these changes so I can compare?”
Always attach a competing written quote. A request without one is easy to refuse.
Shop Section C directly. Get at least two quotes for title and settlement services and for homeowner’s insurance, since both are shoppable. Duane Buziak’s Total Cost Ecosystem covers title, realtor, and insurance savings, and the practice runs on a zero-kickback policy, so referrals are made on price and service rather than on what the broker earns.
Points versus a lender credit
Discount points trade cash now for a lower payment. A lender credit does the reverse. To decide, calculate the break-even: point cost divided by monthly payment savings. If you will likely move or refinance before that month, take the credit.
Do not trade the rate against the fees blindly. A rate that looks lower can come packaged with higher origination or points, so compare the total cost over the time you expect to hold the loan, not the rate alone. The lowest rate is not always the lowest cost.
Step 5: Ask the Seller to Pay Closing Costs and Concessions
VA rules let a seller pay all of a veteran’s allowable closing costs. On top of that, the seller may contribute up to 4% of the loan value in concessions. Concessions include things like paying off the buyer’s debts or judgments, prepaying taxes and insurance, and paying the funding fee. Confirm the current wording on the VA closing costs page and in the Lenders Handbook.
The distinction matters. Normal closing costs, such as title, appraisal, and recording, do not count toward the 4% cap. Concessions do. Seller credits are not unlimited, and the cap is calculated on the loan value, not the price.
Three tactics work:
- Write the request into the initial offer. It is easier to negotiate before the seller has committed to a price.
- Ask for credits instead of a price cut in a slow market. Sellers often prefer a credit because it keeps the recorded sale price higher.
- Ask for a credit after inspection. If repairs come up, a credit can serve both the repair cost and your closing costs.
Coordinate with your agent early so the contract language is correct. Duane Buziak structures no-out-of-pocket closing options for qualified buyers using seller credits, broker-negotiated lender credits, or both, which can leave little to nothing out of pocket at closing. What is possible depends on the contract, the appraisal, and the loan program, so it is never a promise before the numbers are run.
Step 6: Run the Numbers on a Worked Example
The following is an illustration, not a quote. Suppose a $400,000 purchase with 0% down, a 740 FICO, and first-use VA entitlement.
- Funding fee: 2.15% (verify against the current VA table) is $8,600. Financed, the loan becomes $408,600.
- Illustrative closing costs of $9,000: origination $2,500, title and settlement $2,200, appraisal $700, prepaids and escrows $3,000, recording and other $600.
- Negotiated savings: origination drops to $1,800 and title to $1,900, saving $1,000. Costs fall to $8,000.
- Seller concession: 2% of $400,000 is $8,000, which covers the full $8,000. Cash needed at closing is $0 in this scenario, apart from any earnest money.
Now the funding fee. Assume an illustrative 6.25% rate on a 30-year term. Principal and interest on $400,000 is about $2,463 a month. On $408,600 it is about $2,516, so financing the fee adds roughly $53 a month. If the seller paid the fee instead, it would count toward the 4% concession cap and your loan stays at $400,000.
For points, one point on $408,600 costs $4,086. If it buys a drop from 6.25% to 6.00%, the payment falls by roughly $66 a month, so the break-even is about 62 months, just over five years. Sell or refinance sooner and the points lose money.
For a state data point, check the loan limit that applies to your market. FHFA’s 2026 baseline conforming loan limit is $832,750, per its 2026 announcement. It applies in Virginia, Florida, Tennessee, and Georgia, though high-cost counties can be higher. For veterans with full entitlement, VA sets no loan limit, so the figure matters mainly with remaining or reduced entitlement. Confirm it before relying on it.
Step 7: Lock In the Agreement and Verify the Final Closing Disclosure
Verbal promises do not close loans. Make sure every credit appears in the purchase contract, and then on the Loan Estimate or the revised version your broker re-issues. Confirm your rate lock period covers your closing date with a margin, since lock extensions cost money. A delay caused by a slow appraisal or title issue can turn a good deal into an expensive one.
At least 3 business days before closing, you should receive your Closing Disclosure. Compare it line by line with the final Loan Estimate using the CFPB’s Closing Disclosure explainer. Tolerance rules limit how much costs can rise:
- Origination charges and certain other fees cannot increase from the Loan Estimate.
- Some third-party fees, when you used a provider from the lender’s list, can rise by a combined 10%.
- Some items, like prepaid interest and escrow amounts, can change with fewer limits.
If a number moved in the wrong direction, ask for a written explanation, then for a correction or a credit to cover the difference. If your broker or the other party will not fix an increase that breaks the tolerance rules, your competing written quote is your fallback, as long as there is time left on the lock and the contract.
One common mistake: a seller credit that exceeds the allowable costs. Excess credit generally cannot be kept as cash or applied freely, so it may be lost. Size the credit to your real costs, and ask your broker to confirm before you sign.
Review Your Closing Disclosure Line by Line, Then Compare Again
Once the Closing Disclosure matches your agreement, you are done negotiating. If you are still shopping, the best next move is a side-by-side comparison. Call Duane Buziak at VA Loans Pro by Duane Buziak to run a NoTouch Credit Pull comparison against your current Loan Estimates, with no credit hit mortgage application required. Learn more about our services.
Frequently Asked Questions About Negotiating VA Closing Costs
Can the seller pay all VA closing costs?
Yes, a seller can pay all of a veteran’s allowable closing costs under VA rules. Up to 4% of the loan value in additional concessions is also allowed, and the concessions count toward that cap while normal closing costs do not.
What fees can’t a veteran pay on a VA loan?
A veteran cannot be charged VA’s non-allowable fees, such as the lender’s attorney fees or broker and finder fees beyond the 1% flat charge. Verify the current list in VA’s Lenders Handbook, Chapter 8.
Is the VA funding fee negotiable?
No, the funding fee is a percentage set by VA and cannot be negotiated. You can have it financed, paid by the seller as a concession, or waived if you are exempt, for example through VA disability compensation.
Can I roll closing costs into a VA loan?
You can finance the funding fee, but other closing costs generally cannot be rolled in on a purchase. Seller credits and lender credits are the usual ways to reduce cash due.
What is the VA 1% flat charge?
The 1% flat charge is the cap on origination-type fees a veteran may be charged, calculated on the loan amount. It covers the lender’s origination services, so separate processing or underwriting fees cannot be stacked on top.
How do discount points differ from a lender credit?
Discount points are paid up front to lower your rate, while a lender credit gives you cash toward closing costs in exchange for a higher rate. Compare them using break-even months: point cost divided by monthly savings.
Can I get a mortgage pre approval without a hard pull?
Yes, Duane Buziak’s NoTouch Credit Pull is a soft pull mortgage broker option that gives real pricing without a hard inquiry. A hard pull is generally needed later, when you formally apply.
Can I get a VA loan with a 500 credit score?
Possibly, because VA sets no minimum score and some wholesale investors accept scores down to 500. Approval is never guaranteed, and rates and overlays become stricter as scores fall.
Disclaimer: This article is for general education and is not financial, legal, or tax advice. Rates, fees, VA rules, and program terms change and are subject to approval, so verify current figures with VA and a licensed professional. Worked examples are illustrations, not rate quotes or guarantees of approval. Equal Housing Opportunity.
About the author: Duane Buziak, NMLS #1110647 (Coast2Coast Mortgage LLC, NMLS #376205), is a Scotsman Guide Top Originator (#114 nationally), a VA Broker of the Year for 2024 and 2025, and a UWM PRO ELITE 2025 honoree, with 1,400+ five-star reviews. He helps veterans in Virginia, Florida, Tennessee, and Georgia compare wholesale pricing. Read more on the About page.