Do VA loans require an origination fee?

Like conventional loans, VA loans include an origination fee to originate, or process, the loan. Certain lenders may split your origination fee into a processing fee and an underwriting fee. Origination fees usually cost 0.5% – 1% of your mortgage (before factoring in your discount points). The good news is that the VA limits the amount lenders can charge VA borrowers to no more than 1% for these fees.

Can I purchase discount points for a VA mortgage?

When you purchase a discount point on your mortgage, you’re essentially paying cash upfront to reduce the interest rate on your mortgage. Discount points save you money over the length of the loan, though each point is priced at 1% of the loan. Since VA loans are eligible for discount points, you’ll need to decide if and how many points you’d like to purchase.

Can VA loan closing costs get rolled into your loan?

Although you can’t include all of your closing costs in your mortgage, the VA does allow you to roll your VA funding fee into your total loan amount. By financing your funding fee with the rest of your loan, you’ll instead repay the amount over time. Keep in mind that rolling closing costs into your loan amount means you’ll pay interest on that borrowed money. You’ll pay more in interest over the lifetime of the loan, but it might be worth it if you want to finalize your loan as soon as possible or don’t have excess cash on hand.

Can Closing Costs Be Included In A VA Loan?