{"id":6026,"date":"2023-06-15T18:57:06","date_gmt":"2023-06-15T18:57:06","guid":{"rendered":"https:\/\/griffinfunding.com\/?p=6026"},"modified":"2026-01-24T00:28:30","modified_gmt":"2026-01-24T00:28:30","slug":"va-nonallowable-fees","status":"publish","type":"post","link":"https:\/\/griffinfunding.com\/blog\/va-loans\/va-nonallowable-fees\/","title":{"rendered":"What Are VA Non-Allowable Fees & Who Pays Them?"},"content":{"rendered":"

Non-allowable fees help keep your VA loan closing costs<\/a> low and can help you save money when taking out a mortgage. Keep reading to learn more about VA loan non-allowable fees, including what they are and who pays them.<\/p>\n

What Are VA Non-Allowable Fees?<\/h2>\n

VA loan non-allowable fees <\/span>describe certain closing costs that<\/span> the lender can\u2019t charge VA borrowers at closing. <\/span>Review this list of VA non-allowable fees to better understand the closing costs you aren\u2019t responsible for:\u00a0<\/span><\/p>\n

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  1. Application fees: <\/b>Many lenders charge application fees as a non-refundable charge, and the costs vary by lender. Typically, these fees cover the costs of processing and underwriting the loan application. However, when you apply for a VA loan, the lender can\u2019t charge you an application fee.<\/span><\/li>\n
  2. Escrow fees:<\/b> With many types of home loans, you\u2019ll pay an escrow fee as part of the closing costs. These fees go directly to a company or attorney who is responsible for distributing funds to those involved in the transaction. Escrow fees are VA non-allowable fees, meaning if you use a VA loan to purchase a home, you won\u2019t pay for escrow fees.<\/span><\/li>\n
  3. Rate lock fees: <\/b>Some lenders charge rate lock fees for you to lock in your interest rate for a set period of time. These fees vary by lender, but most lenders don\u2019t charge them if your lock is for less than 60 days. VA loan borrowers won\u2019t be subject to these fees. Instead, they can lock their rate in without paying for it, helping them save more over the life of the loan.<\/span><\/li>\n
  4. Appraisals and inspections:<\/b> The VA requires that properties meet minimum property requirements (MPRs) in order to be eligible for a VA loan. You\u2019ll pay for the <\/span>VA appraisal<\/span><\/a> out of pocket. However, the VA prohibits lenders from charging you for additional appraisals or home inspections.<\/span><\/li>\n
  5. Notary costs: <\/b>Notaries often cost money because they have to act as a witness to the signing of various documents while notarizing them. With most loans, borrowers must pay the notary fees out of pocket, and these fees are non-allowable under the VA loan.<\/span><\/li>\n
  6. Lawyer, broker, and trustee fees: <\/b>Many parties are involved in real estate transactions, not just the buyer, seller, and mortgage lender. Luckily, when you take out a VA loan, you\u2019re not responsible for lawyer, broker, or trustee fees.<\/span><\/li>\n<\/ol>\n

    VA home loans are backed by the Department of Veterans Affairs (VA) and are designed to make homeownership more affordable for eligible borrowers. While the VA doesn\u2019t provide these loans, they set strict rules for lenders regarding the various fees borrowers are expected to pay at closing.<\/span><\/p>\n

    With a simple 10-step mortgage process, Griffin Funding strives to make applying and securing a home loan easy, transparent, and quick.<\/h3>Get Started<\/a><\/div><\/span><\/p>\n

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    How Do Non-Allowable VA Fees Work?<\/h2>\n

    The VA has guidelines for the types of fees lenders can charge VA loan borrowers. VA non-allowable fee amounts are determined by the following:<\/p>\n