How do you calculate closing costs on a VA loan?
VA closing costs = standard third-party fees plus the VA funding fee: 2.15% of the loan for first use with zero down (3.3% on repeat use; 1.25–1.5% with 5–10% down). Veterans with service-connected disability ratings are exempt from the funding fee entirely.
VA funding fee on a $350,000 zero-down purchase (2025)
| Situation | Fee rate | Amount |
|---|---|---|
| First use, 0% down | 2.15% | $7,525 (usually financed) |
| First use, 10% down | 1.25% | $4,375 on $315k loan |
| Subsequent use, 0% down | 3.3% | $11,550 |
| Disability exemption | 0% | $0 — check your Certificate of Eligibility |
How to read this table
- Subsequent use, 0% down sits at the top of the table (3.3%) — $11,550. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
- Disability exemption anchors the bottom (0%) — $0 — check your certificate of eligibility. Treat this as the conservative case you should still be profitable at.
- With 4 reference points in the "va funding fee on a $350,000 zero-down purchase (2025)" table, the fastest way to use this page is to find the closest row, take its fee rate, then stress-test it ±30% before you build a plan on it.
Context
VA loans restrict what buyers can be charged: the 1% origination cap, and a list of 'non-allowable' fees (attorney, escrow in some states, prep penalties) that the seller or lender must absorb. Sellers can pay all closing costs plus up to 4% in concessions. Because there's no monthly mortgage insurance, VA is usually the cheapest zero-down path even with the funding fee — and the fee is refundable if a disability rating is backdated to before closing.
What moves this number
Financing terms
Rate, down payment and amortisation drive cash-on-cash return more than purchase price does. The same building can cash-flow or bleed depending on the loan.
True operating expense ratio
Management, insurance, tax, maintenance, vacancy and capital reserve typically consume 35–50% of gross rent. Models that skip reserves overstate returns badly.
Vacancy and turnover
One 45-day vacancy plus a turn can erase a year of thin cash flow. Underwrite 5–8% vacancy even in tight markets.
Local regulation
Rent rules, short-term rental caps and licensing requirements change the achievable revenue of an identical property between neighbouring cities.
Methodology
Funding fee schedule per VA (2020 Blue Water Navy Act rates, current through 2025–2026); non-allowable fee rules per VA lender handbook.
Assumptions and caveats
- Returns exclude appreciation and principal paydown unless a row states otherwise.
- Local tax, insurance and regulation can move these figures by several points in either direction.
- This page was last reviewed on 2026-10-01. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
- Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.
Frequently asked questions
How do you calculate closing costs on a VA loan?
VA closing costs = standard third-party fees plus the VA funding fee: 2.15% of the loan for first use with zero down (3.3% on repeat use; 1.25–1.5% with 5–10% down). Veterans with service-connected disability ratings are exempt from the funding fee entirely.
Which option pays the most in the va funding fee on a $350,000 zero-down purchase (2025) table?
Subsequent use, 0% down, at 3.3% ($11,550). That row represents the strongest case in this dataset, so use it as an upper bound rather than an expectation.
What is a realistic low-end figure?
Disability exemption at 0% ($0 — check your Certificate of Eligibility). Plan your costs so the low end still works, then treat anything above it as upside.
Where do these numbers come from?
Funding fee schedule per VA (2020 Blue Water Navy Act rates, current through 2025–2026); non-allowable fee rules per VA lender handbook.
How can I estimate my own number instead of using a benchmark?
Use the Closing Costs Calculator on RevenueLab — it takes your own inputs and returns a figure specific to your setup, which is always more accurate than a published range.
Model your own numbers
Related reading
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Last updated 2026-10-01.