Are VA loans really 'zero closing costs'?
No. VA loans can have lender, title, government, prepaid and escrow-related charges, plus a funding fee when the borrower is not exempt. A seller or lender credit may offset eligible costs, but the costs do not simply disappear.
What this actually means.
The actual Loan Estimate and Closing Disclosure show which charges apply to the transaction. Seller credits, builder incentives or lender credits may reduce cash needed; a lender credit can involve a higher rate. Compare Rate and APR, points or credits, the funding fee, total cash to close and complete payment before accepting a zero-closing-cost description. Do not assume every possible charge appears on every VA file.
Where this can move.
Earnest money, closing costs, prepaids, escrow setup, and the funding fee (if not financed) all hit cash to close even when the loan is zero down.
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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.