Best List of VA Non-Allowed Fees

Real Estate Agent with HomeSmart Realty West Cal BRE#01427412

Best List of VA Non-Allowed Fees - The VA guidelines state allowable fees that the Veteran borrower can pay and closing costs that may be charged to the borrower. All other costs in the home purchase transaction are considered non-allowable. Here is a list of some of the more common VA non-allowed fees for reference. This is not an all-inclusive list.


The fees on this list MUST BE paid for by the seller, lender, or agent:


  • Attorney Fees
  • Brokerage Fees
  • Pre-payment penalties
  • HUD/FHA inspection fee
  • Lender's appraisals
  • Lender's inspections, except in construction loan cases
  • Loan closing or settlement fees
  • Document preparation fees
  • Preparing loan papers or conveyance fees attorney's services other than for title work
  • Photographs
  • Interest rate lock-in fees
  • Postage and other mailing charges, stationery, telephone calls, and other overhead
  • Amortization schedules, pass books, and membership or entrance fees
  • Escrow fees or charges
  • Notary fees
  • Commitment fees or marketing fees of any secondary purchaser of the mortgage
  • Preparation and recording of assignments of mortgage to such purchaser
  • Trustee fees or charges
  • Loan application or processing fees
  • Fees for preparation of truth-in-lending disclosure statement
  • Fees charged by loan brokers, finders or other third parties whether affiliated with the lender or not, and 
  • Tax service fees

Pest Inspection is an unallowable charge to the borrower if it is a requirement of the Notice of Value (NOV). If the NOV does not require a Pest Inspection and the borrower still wants to have one completed, the lender must have documentation to support the borrower's request. For example, in  California, VA purchases require termite clearance and therefore the Pest inspection is a non-allowable item.



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Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information thanks for sharing.  I did not know the list was this extensive.  No wonder seller are reluctant do do VA loans.

Jan 27, 2014 09:35 PM #1
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