Common Questions About VA Loans and Closing Costs

VA loans are one of the most valuable home financing benefits available to eligible veterans, active-duty service members, and certain qualifying surviving spouses. Even so, there’s still a lot of confusion around how VA loans work, especially when buyers get closer to the closing table.

We hear many of the same questions throughout the process, so we’re answering a few of the most common ones here.

Do VA Loans Require a Down Payment?

One of the biggest advantages of a VA loan is that many qualified buyers are able to purchase a home with no down payment. That’s a major reason VA financing continues to be such an attractive option compared to many conventional loan programs.

That said, buyers should still expect some upfront expenses during the transaction process. Depending on the contract, that can include earnest money deposits, inspections, appraisal fees, and certain closing-related costs.

Are Closing Costs Higher with a VA Loan?

Not necessarily. In fact, VA loans place limits on some of the fees buyers can be charged, which may help reduce out-of-pocket expenses in certain situations.

Closing costs can still include things like:
• lender fees
• appraisal fees
• prepaid taxes and insurance
• recording fees
• title-related expenses

The total amount varies depending on the purchase price, lender requirements, and how the contract is negotiated.

Can Sellers Help Pay Closing Costs?

Yes. VA guidelines allow sellers to contribute toward certain closing costs and concessions within approved limits. For many buyers, this can help reduce the amount of cash needed at closing and preserve savings after purchasing the home.

Every transaction is different, but these conversations are common and are usually best addressed early in the contract process.

What Is the VA Funding Fee?

The VA funding fee is a one-time fee paid to the Department of Veterans Affairs that helps support the VA loan program for future borrowers.

For many buyers, the fee can be rolled into the loan instead of being paid upfront at closing. Some veterans may also qualify for an exemption from the funding fee entirely, particularly those receiving disability compensation.

Your lender can help determine whether the funding fee applies to your specific situation.

Do VA Loans Take Longer to Close?

This is probably one of the biggest misconceptions surrounding VA financing.

While VA loans do have specific appraisal and property requirements, they do not automatically mean a delayed closing. In many cases, VA transactions move just as smoothly as conventional loans when communication is strong and deadlines are handled proactively.

A knowledgeable lender, responsive agents, and an experienced closing team can make a significant difference throughout the process.

Do VA Buyers Still Need Title Insurance?

Yes, and it remains an important part of the closing process.

Title insurance helps protect buyers from potential issues connected to the property’s history, including:
• undisclosed liens
• ownership disputes
• recording errors
• fraud
• unknown claims against the property

Before closing, a title search is performed to help identify issues early. Title insurance then provides an additional layer of protection moving forward after the transaction is complete.

VA loans continue to give many military families the opportunity to become homeowners with flexible terms and important financial advantages. Unfortunately, outdated misconceptions can still create hesitation for both buyers and sellers.

The reality is that VA buyers are often highly qualified, and VA financing can be an excellent option for many real estate transactions.

While VA loan guidelines are established at the federal level, the closing process itself can vary from state to state. In Georgia, real estate closings are typically handled by licensed real estate attorneys, helping buyers better understand the legal, financial, and title-related aspects of the transaction before closing day.

From reviewing title work to preparing closing documents, having an experienced closing team in place can help the entire process feel smoother and less stressful. If you have questions about the closing process, title work, or what to expect before closing day, our team is always here to help at attorneys@millertitlelaw.com.