Your VA loan offers zero down payment but what about closing costs? Closing costs are part of every home purchase, but with a VA loan, there is a powerful advantage: The seller can pay them for you.
How It Works
In most transactions, we structure offers with the seller contributing up to 6% toward
closing costs and prepaid items.
This typically covers:
- Loan costs and lender fees
- Title and escrow fees
- Prepaid homeowner’s insurance
- Property taxes and escrow setup
- VA funding fee (if applicable) (if applicable)
In many cases, this allows you to buy a home with little to no money out of pocket.
Earnest Money
Your earnest money deposit is often credited back to you at closing when seller-paid costs are used.
Contract Language
“Seller agrees to contribute up to 6% of the purchase price toward buyer’s closing costs, prepaid items, and allowable fees.”
Seller-paid closing costs are one of the most powerful benefits of the VA loan. You served — now use the benefit to minimize your cash to close.
Additional Seller Contributions (VA Bonus Benefit)
In addition to covering your closing costs, the VA allows the seller to contribute up to 4% of the purchase price toward additional benefits. These are not typical closing costs, they are extra advantages that can further reduce your financial burden.
Examples of Additional 4% Contributions
- Paying off credit cards or collections
- Paying off auto loans or other debts
- Covering judgments or borrower liabilities
- Providing additional financial flexibility at closing
This 4% is separate from your closing costs and is in addition to the seller paying up to 6%
of your normal closing costs.
What This Means for You
- Full closing costs covered
- Additional financial relief through concessions
- Minimal or zero out-of-pocket purchase