What are VA non-allowable fees?
VA's 1% rule limits the lender's flat origination charge to no more than 1% of the loan amount. It is not a down payment or the VA funding fee. VA-permitted itemized third-party charges and reasonable discount points may still be separate.
What this actually means.
If a lender charges the 1% flat fee, it cannot separately charge the veteran for lender costs VA says must be covered by that fee, such as processing, underwriting or administrative charges. VA-permitted itemized fees such as the appraisal, credit report, title and recording charges may still appear, along with reasonable discount points. The 1% figure is a cap, not a required fee. Subject to VA guidelines.
Where this can move.
Title and escrow fees, Florida doc stamps, the funding fee, prepaids, escrow setup, and lender fees within VA's allowable list. Non-allowable fees shift to seller or lender.
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Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with the VA, HUD, or any government agency.