VA Closing Costs Explained for San Diego Buyers
Zero down does not always mean zero cash. Here is what to expect, what VA limits, and how sellers can help, so there are no surprises at closing.
What you may pay
Typical buyer costs on a VA purchase can include lender fees, appraisal, credit report, title insurance, escrow fees, recording, prepaid property taxes and homeowners insurance, and your home inspection. Your lender's Loan Estimate lists your actual numbers.
- Earnest money deposit: shows the seller you are serious. It is credited toward your purchase at closing.
- Inspection costs: usually paid up front, before closing.
- Prepaids: property taxes and insurance collected to set up your account.
The VA funding fee
The funding fee is a one-time charge that helps keep the VA loan program running. It is a percentage of the loan amount and depends on your down payment and whether you have used the benefit before. It can usually be financed into the loan.
| Down payment (purchase) | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to less than 10% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Rates shown for purchase loans as published by VA and in effect as of November 2026. Confirm current rates on VA.gov and with your lender.
What VA limits
VA rules limit certain fees a veteran can be charged, which helps keep costs reasonable. Your lender will explain how these limits apply to your loan.
How sellers can help
- Paying closing costs: sellers may pay your normal closing costs.
- Seller concessions: VA allows additional concessions, such as paying your funding fee or paying off certain debts, up to 4% of the reasonable value.
- Repair credits: sometimes negotiated after the inspection, within lender rules.
Gerry structures offers so that asking for help with costs does not weaken your offer in the seller's eyes. Sometimes a slightly higher price with seller credits makes more sense than a lower price with none. Your lender and Gerry can show you both.
A quick estimate
For example, on a $750,000 purchase with 0% down and first-time use, a 2.15% funding fee would be about $16,125, usually added to the loan. A buyer who is exempt would pay $0 in funding fees. Other closing costs vary by lender, title, and escrow. Ask your lender for a written Loan Estimate.
Frequently asked questions
Can the seller pay my VA closing costs?
Yes. Sellers can pay your normal closing costs, and VA also allows seller concessions, such as paying the funding fee or paying off certain debts, up to 4% of the home's reasonable value. Your lender confirms what fits within the limits.
Who pays the buyer's agent in a VA purchase?
It is negotiated. Sellers often agree to pay the buyer's agent, and current VA guidance allows veterans to pay some or all of a reasonable buyer-broker fee in certain situations. Gerry explains the options in writing before you tour homes, and your lender confirms how VA rules apply to your loan.
Can I roll the VA funding fee into my loan?
In most cases, yes. The funding fee can usually be financed into the loan amount instead of paid in cash at closing. Ask your lender how that affects your payment.
General education, not financial or legal advice. Gerry Carrillo is a real estate agent, not a lender.
Have questions about using your VA benefit in San Diego?
Call or text Gerry for a no-pressure conversation. You will get straight answers, a clear plan, and introductions to VA-experienced lenders. English or Spanish.