Who pays for which closing costs?

The seller must pay these closing costs (sometimes called “seller’s concessions”): Commission for real estate professionals Brokerage fee Buyer broker fee Termite report (unless you’re using a refinancing loan) You (the buyer) or the seller can negotiate who will pay other closing costs such as the: VA funding fee Loan origination fee Loan discount points or funds for temporary “buydowns” Credit report and payment of any credit balances or judgments VA appraisal fee Hazard insurance and real estate taxes State and local taxes Title insurance Recording fee Note: We require that a seller can’t pay more than 4% of the total home loan in seller’s concessions. But this rule only covers some closing costs, including the VA funding fee. The rule doesn’t cover loan discount points. More VA home loan resources VA home loan types Learn how VA-backed and VA direct home loans work—and find out which loan program might be right for you. Eligibility Find out if you can get a Certificate of Eligibility (COE) for a VA-backed or VA direct home loan based on your service history and duty status.