Closing costs are what you will pay before the home purchase or renovation is complete. Some of these fees will be prepaid while others will be due at closing. You will receive a closing disclosure a few days before the closing which outlines all costs and fees you will be required to pay.
USAA does not charge mortgage origination fees for VA loans, VA jumbo loans, or IRRRL.
VA loans require a one-time upfront payment called a VA financing fee, collected at closing and non-refundable. Fees are determined by the amount of the loan, your service history and other factors. A down payment on your VA loan may be required under certain circumstances, and maximum loan limits vary by county.
The VA financing fee is a one-time fee of 2.3% of the total amount borrowed. Finance fees increase to 3.6% for borrowers who have used the VA loan program before, but can be reduced by paying at least 5% at closing.
If you refinance, it is 2.3% of the total amount borrowed and 3.6% after the first use. The VA finance charge rates for refinance loans will not change based on the amount of your down payment. If you used a VA-secured or VA-direct home loan to purchase a manufactured home, you only need to pay the first-time financing fee.
For a VA IRRRL, USAA Bank covers VA appraisal, title, and financing fees. However, payment of redemption points, taxes and insurance, and HOA fees will be your responsibility. USAA’s IRRL has -0.125 rebate points, which means the bank offers cash rebate to help lower your closing costs.
Because you’re paying less up front, you’ll pay a higher interest rate for the life of the loan.
There are no discount points offered on USAA VA or jumbo VA loans, which means your closing costs will be lower than other loans, but you also won’t be able to further reduce your interest rate.
Other closing costs to expect:
- Appraisal fees for home market value assessment; these are set by the AV, not the lender, and vary depending on the location of the property
- Registration fees paid to the city or county to register your mortgage deed and documents
- Subscription fee for the cost of reviewing and verifying your application
- Title fees to verify that there are no tax liens on the property and for title insurance to protect you if a problem is discovered